Patanjali Ayurved is back in the spotlight—this time not for a wellness campaign, but for a series of questionable financial transactions that have raised eyebrows at the Centre. A Bloomberg report says the Ministry of Corporate Affairs has issued a formal notice to the yoga-inspired FMCG company, asking for explanations after central economic intelligence agencies flagged a number of its dealings as “abnormal and dubious”.
The government hasn’t publicly revealed exact figures or detailed what kind of transactions are under the lens, but the probe is reportedly in an early stage. Patanjali has been given around two months to respond.
This isn’t the company’s first brush with controversy. In fact, this new investigation only adds to a growing pile of regulatory troubles faced by Patanjali and its associated firms. Just last year, one of its units was served show-cause notices over alleged tax irregularities and questionable refund claims.
But that’s not all. Patanjali has also come under fire for pushing ads that promised miraculous cures for serious illnesses like cancer—claims that didn’t sit well with medical experts or regulators. The Supreme Court had to step in, banning the company from promoting its products as treatments for diseases, citing violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.
Down south, things aren’t looking much better. As of February 2025, the Kerala Drugs Control Department reported 26 active legal cases against Ramdev and Patanjali across multiple courts. These cases are all linked to the controversial advertisements. And it’s not just the company in the dock—several newspapers that carried those ads are now facing legal proceedings of their own.
While Patanjali Ayurved is a privately held company, its listed arm, Patanjali Foods Ltd, hasn’t been immune to the fallout. The stock has slid nearly 10% so far this month, possibly reflecting investor concern over the mounting legal and regulatory scrutiny.
It remains to be seen whether Patanjali’s response will satisfy the ministry or if this is the beginning of deeper investigations. Either way, the message seems clear: even for spiritual brands, clean books and cautious claims are not optional.
