Baba Ramdev's Patanjali under scanner for 'suspicious' transactions: Report

The Centre has asked Patanjali Ayurved Ltd to explain some transactions deemed suspicious, according to people familiar with the matter.

Co-founded by celebrity yoga guru Baba Ramdev, Patanjali Ayurved is reportedly under scrutiny from the Corporate Affairs Ministry over a series of financial transactions flagged as suspicious.

‘Dubious’ transactions

According to a Bloomberg report, the ministry sent a notice to the company after a federal economic intelligence wing identified certain transactions as “abnormal and dubious,” citing unnamed officials familiar with the matter.

The amounts involved have not been disclosed, as the probe remains in its early stages. Patanjali has about two months to respond to the government’s notice, Bloomberg added quoting sources privy to the matter.

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Officials are also examining potential violations of corporate governance standards and whether there was any diversion of funds, the report added.

Not the first time

However, this is not the first time the company or its affiliates have drawn regulatory heat. Last year, a Patanjali unit faced government notices over alleged unpaid taxes and improper refund claims.

The company also faced significant backlash for promoting misleading ads on products, promising cures for serious medical ailments such as cancer. The Supreme Court had restrained the company from promoting its products as cures for various ailments, citing violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.

While Patanjali Ayurved is a closely held company, its unit Patanjali Foods Ltd is publicly traded. Its shares have declined close to 10% so far this month.