Patanjali Ayurved, founded by yoga guru Ramdev, is facing fresh scrutiny from the Ministry of Corporate Affairs (MCA) over suspicious financial transactions. The probe follows a report by federal economic intelligence agencies that flagged certain transactions as potentially irregular.
The government investigation is looking into possible fund diversion and alleged violations of corporate governance norms within the company. In response, the MCA has issued a notice to Patanjali Ayurved, seeking an explanation for the transactions in question.
The flagged transactions were considered “abnormal and dubious” by the agencies, raising concerns about potential financial irregularities. However, specific details about the transactions have not been made public, as the investigation is still in its preliminary stages.
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Patanjali Ayurved has been given about two months to respond to the government’s notice and provide explanations for the transactions in question. The company will need to clarify its position and address the concerns raised by the Ministry of Corporate Affairs.
This latest development adds to the regulatory challenges faced by Patanjali Ayurved and its subsidiaries. The company has previously faced scrutiny for alleged tax violations and wrongful GST refund claims, and one of its units received show-cause notices from tax authorities last year, highlighting ongoing concerns about its compliance with tax laws.
Patanjali Ayurved has faced legal issues over its advertising practices, particularly for airing misleading ads claiming to cure serious diseases like cancer. These ads drew widespread criticism and led to regulatory action.
The Supreme Court of India recently barred the company from making such claims, citing violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954. This ruling aims to prevent Patanjali from making unsubstantiated claims about its products’ efficacy in treating serious health conditions.
As of February 2025, Ramdev and Patanjali faced 26 active legal cases in various Kerala courts related to violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954. Additionally, several newspapers that published the controversial ads are also undergoing legal proceedings.
Patanjali Ayurved, though a privately held firm, has seen its listed subsidiary Patanjali Foods Ltd impacted by the regulatory challenges. The subsidiary’s shares have dropped nearly 10% this month amid increasing regulatory pressure, reflecting the broader impact of the issues faced by the parent company.
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