Police in northern Shanxi Province have arrested seven executives of a dairy company on charges of selling 26 tons of melamine-laced milk powder which was supposed to be destroyed following a major scandal in 2008.

Jinfulai Diary Company in Yangquan County was found to repackaged the tainted milk powder for sale in central Hunan and Hebei provinces since last December, reported today's Procutratorial Daily.

The powder was given as debt payment by another company, whose name was not revealed.

Regulators said they dicovered the tainted milk powder in a nationwide crackdown in July. The invesigation was still underway.