Patanjali Faces Govt Probe Over Dubious Transactions

New Delhi: The Indian government has launched a probe into Patanjali Ayurved Ltd, co-founded by yoga guru Ramdev, over a series of financial transactions flagged as suspicious by central economic intelligence agencies, Bloomberg reported.

The Ministry of Corporate Affairs has formally issued a notice to the company, questioning possible fund diversion and violations of corporate governance norms. While exact figures remain undisclosed, officials have described the transactions under review as “abnormal and dubious.” Patanjali has been allotted around two months to provide a detailed response.

This investigation is the latest in a string of regulatory and legal issues surrounding Patanjali Ayurved and its related entities. In the past year, a subsidiary of the firm received show-cause notices over alleged tax irregularities and improper refund claims.

The company has also drawn criticism for its advertising practices. Patanjali came under legal fire for making unverified medical claims in its product advertisements, including alleged cures for serious conditions like cancer. The Supreme Court of India intervened, banning such promotions and citing violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.

In a related development, the Kerala Drugs Control Department, in February 2025, revealed that 26 active cases are ongoing against Ramdev and Patanjali in courts across the state under the same advertising law. Several print media outlets are also under scrutiny for publishing the disputed advertisements.

Though Patanjali Ayurved remains a privately held company, the impact has been felt in the public markets. Shares of its listed arm, Patanjali Foods Ltd, have dropped nearly 10% so far this month amid the ongoing developments.