Patanjali Ayurved Case: Uttarakhand Govt Bans 14 Products For Misleading Ads; SC Exempts Ramdev

The Uttarakhand drug regulator released a notification dated April 24 stating that the manufacturing licenses of 14 products manufactured by Patanjali Ayurved have been suspended due to misleading advertisements about their efficacy. The Uttarakhand Government has not disclosed the specifics of the order publically.

The move comes amidst ongoing scrutiny from the Supreme Court, which has criticized Baba Ramdev for failing to comply with directives to cease misleading advertisements for some of his products. Despite these criticisms, the apex court granted Ramdev exemption from personal appearance in the latest hearing related to the case on Tuesday, April 30.

During the hearing, a bench comprising Justices Hima Kohli and Ahsanuddin Amanullah acknowledged an advertisement in which Ramdev and his associate, Acharya Balkrishna, apologized for the misleading advertisements regarding the medicinal efficacy of Patanjali Ayurved's products. The court noted improvements in the size and content of the apology advertisement, allowing an exemption for the next date of hearing.

Senior advocate Mukul Rohatgi, representing Ramdev, announced intentions to file a contempt case against the Indian Medical Association (IMA) for their remarks on the court's order. This development underscores the contentious nature of the case, with stakeholders from both sides engaging in legal battles.

In previous hearings, Ramdev and Balkrishna faced questions about the prominence of their apology advertisement in newspapers. The bench queried whether the advertisement matched the size of those typically issued by Patanjali Ayurved, indicating a thorough examination of the company's compliance with court directives.

The suspension of manufacturing licenses adds to the legal and regulatory challenges faced by Patanjali Ayurved. The company's reputation has come under scrutiny due to allegations of misleading advertisements, particularly concerning the efficacy of its products. This development may have broader implications for the consumer goods industry, as regulators and courts crack down on false advertising practices.

Meanwhile, the controversy surrounding Patanjali Ayurved has also stirred public debate about the regulation of alternative medicine and the responsibilities of prominent figures in the wellness industry.

In a recent interview with the Press Trust of India (PTI), Dr RV Asokan, the President of the Indian Medical Association (IMA), shed light on the association's decision to take legal action against Patanjali, the company founded by yoga guru Baba Ramdev. Asokan asserted that Ramdev had "crossed a red line" by making unsubstantiated claims about curing COVID-19 while simultaneously denigrating modern medicine.

Ramdev's disparaging remarks, including labelling modern medicine as "stupid and bankrupt science," have sparked outrage within the medical community. The controversy reached its peak when a 2021 video surfaced, showing Ramdev casting doubt on the efficacy of allopathic medicines, including widely used drugs like Remdesivir and Fabiflu. The IMA promptly issued a legal notice in response to Ramdev's comments, prompting legal proceedings.

The Supreme Court recently intervened in the matter, hearing the IMA's plea alleging a smear campaign against the COVID-19 vaccination drive and modern medical practices. In light of the seriousness of the allegations, the court directed Ramdev, his associate Acharya Balakrishna, and Patanjali Ayurved Ltd to issue a public apology for flouting its orders on misleading advertisements.

The controversy surrounding Patanjali has extended beyond its claims about COVID-19 treatments. Patanjali Foods, a subsidiary of the company, has been served a show cause notice by the GST intelligence department, questioning the validity of input tax credits worth Rs 27.46 crore. This development led to the shares of Patanjali Foods witnessing a nearly 4% slump in trading on the National Stock Exchange (NSE) at Rs 1,507.45 per share as of 12:15 pm.

Despite the recent setback in share prices, Patanjali Foods has experienced significant growth, with its stock value soaring by more than 65% over the past year.