Patanjali Ayurved, founded by yoga guru Baba Ramdev, has come under government scrutiny over alleged fund diversion and corporate governance violations. The Ministry of Corporate Affairs (MCA) has issued a formal notice, seeking an explanation for financial transactions flagged as suspicious by federal economic intelligence agencies.
Key Allegations & Regulatory Concerns
- Fund Diversion Probe: Authorities are investigating “abnormal and dubious” transactions, though specific financial details remain undisclosed.
- Corporate Governance Violations: The MCA is examining whether Patanjali breached governance norms, adding to its ongoing legal challenges.
- Response Deadline: Patanjali has been given two months to respond to the government’s notice.
Previous Regulatory Issues
Patanjali Ayurved has faced multiple legal and regulatory hurdles in recent years:
- Tax Violations: A subsidiary received show-cause notices over alleged wrongful GST refund claims.
- Misleading Advertisements: The Supreme Court barred Patanjali from making false medical claims, citing violations under the Drugs and Magic Remedies Act, 1954.
- Stock Market Impact: Shares of Patanjali Foods Ltd., its listed subsidiary, have plunged nearly 10% amid growing regulatory pressure.
Future Outlook
With India’s corporate watchdog tightening oversight, Patanjali Ayurved faces heightened scrutiny over its financial practices. The company’s response to the MCA notice will be critical in determining its regulatory standing.
