The accused, identified as Upendra Gantayat (33), works in a government hospital at Korei in Jajpur district.
Excise officials also seized machines, packing materials and accessories used in preparation of illegal 'satabari', an intoxicant mainly produced from bhang.
The accused doctor was running the illegal satabari unit at his residence in Khandarapur village, they said.
Following a tip off, the house of the Ayush doctor was raided yesterday and over 10 quintals of 'bhang' worth over Rs 10 lakh was seized, Harish Chandra Sethy, Deputy Superintendent of Police of Excise, Cuttack, said.
The accused has allegedly been procuring 'bhang' from a local 'bhang' smuggler and used to prepare illegal satabari pouches in his residence. The illegal satabari factory is located just 3 km from the district police headquarter and the local police station, he said adding the accused was running the illegal unit for the past couple of years.
A case under various sections of NDPS Act has been registered against the accused, he said.
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