Patanjali Ayurved, one of the companies within the Baba Ramdev-fronted Patanjali Group, has been barred by the Supreme Court, until further orders, from advertising or branding any of its offerings as being products meant for treating diseases.
In view of this Supreme Court order, Patanjali Foods, another company linked to the group, has hastened to clarify that its operations are not affected by the Supreme Court’s observations or the restraint put on Patanjali Ayurved.
In a stinging observation, the Supreme Court bench of Justice Hima Kohli and Justice Ahsanuddin Amanullah yesterday said that “the entire country has been taken for a ride” by the company, which was co-founded by high-profile yoga guru Ramdev.
Issuing notices to Patanjali Ayurved and its Managing Director Acharya Balkrishna, the SC asked why contempt proceedings should not be initiated against them for prima facie violating the firm’s undertaking, given in the court, about the advertising of its products and their medicinal efficacy.
The bench also cautioned the company and its officers against making any media statements, both in print and electronic, against any system of medicine in any form, as stated in their undertaking on November 21, 2023.
What action had the Central government taken against Patanjali Ayurved for the alleged incorrect assertions and misrepresentation in the advertisements about its medicines as cures for several diseases, asked the SC bench.
Patanjali Ayurved gave assurances in November 2023
India’s apex court is hearing a plea of the Indian Medical Association (IMA), which has alleged a smear campaign by Baba Ramdev against vaccination and modern medicines.
On November 21, 2023, the counsel representing Patanjali Ayurved had assured the court that “henceforth, there shall not be any violation of any law(s), especially relating to advertising or branding of products manufactured and marketed by it and, further, that no casual statements claiming medicinal efficacy or against any system of medicine will be released to the media in any form”.
The top court had then cautioned the company against making “false” and “misleading” claims in advertisements about its medicines as cures for several diseases.
During the February 27, 2024, hearing, the SC bench referred to the November statement given by the counsel representing Patanjali Ayurved and said that the company was “bound down” to such an assurance by the court.
The apex court said that until further orders, Patanjali Ayurved would be restrained from advertising or branding of products which were meant to treat ailments specified as diseases, disorders or conditions in the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.
Patanjali Foods says it is an “independent listed entity”
In view of this development, Patanjali Foods issued a statement later yesterday that its business operations and financial performance would not be impacted. In a regulatory filing, Patanjali Foods Ltd said that the “observations of [the] Supreme Court of India do not relate to Patanjali Foods Ltd (PFL), which is an independent listed entity and operates in the space of edible oil and food FMCG products only”.
The company added, “The [SC] observations do not have any bearing on the regular business operations or the financial performance of Patanjali Foods.”
The Patanjali Group has a nearly 74 per cent stake in Patanjali Foods. Out of 73.82 per cent promoter stake, Patanjali Ayurved has 32.37 per cent stake.
In the Supreme Court yesterday, when the counsel for Patanjali Ayurved said that a complete ban on its advertisements might not be fair, the bench observed, “How can we make it conditional when you yourself are not adhering to your undertaking?”
Patanjali’s counsel informed the bench that the company had set up a research laboratory at a cost of nearly INR 40 crore (USD 4.88 million). The SC bench replied, “You have done a research, that it good. There is a system. We respect all the systems but we expect the others, who are following a particular system, also to respect others.”
