Patanjali Ayurved, co-founded by yoga guru Baba Ramdev, is once again under regulatory spotlight as the Ministry of Corporate Affairs (MCA) has launched a probe into suspicious financial transactions within the company. The development was first reported by Bloomberg, citing federal economic intelligence agencies that flagged certain fund movements as “abnormal and dubious.”
MCA Notice & Ongoing Investigation
The MCA has formally issued a notice to Patanjali, demanding clarification on these flagged transactions.
Key facts:
- Agencies suspect possible fund diversion
- Alleged violations of corporate governance norms
- Patanjali has around two months to respond
- No specific financial amounts have been disclosed yet, as the inquiry is in its early stages
Not the First Legal Headache
This is not the first time Patanjali has faced regulatory pressure. The company is already navigating:
- Alleged tax violations
- Questionable GST refund claims
- Advertising controversies, including misleading medical cure claims
In a major setback, the Supreme Court of India recently barred Patanjali from making health cure claims in its ads, citing the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.
Multiple Legal Cases Across States
The crackdown has not been limited to central agencies:
- In February 2025, the Kerala Drugs Control Department reported 26 ongoing legal cases against both Ramdev and Patanjali
- Several newspapers that carried the misleading ads are also facing legal heat
Market Impact: Patanjali Foods Takes a Hit
While Patanjali Ayurved is a privately held firm, its listed subsidiary, Patanjali Foods Ltd, has seen market repercussions:
- Shares have dropped nearly 10% this month
- Investor concerns are growing amid increased regulatory uncertainty
What Lies Ahead
With multiple probes now underway and high-profile court interventions, Patanjali finds itself in a critical period of scrutiny. The company must:
- Respond to the MCA notice within the given timeline
- Navigate legal challenges across states and at the Supreme Court level
- Rebuild public and investor confidence, especially in its listed entities
The coming weeks will be crucial in determining whether Ramdev’s FMCG empire can weather the storm or face deeper regulatory consequences.
