The Ministry of Corporate Affairs in India has issued a notice to Patanjali Ayurved Ltd., based in Uttarakhand, over suspicious financial transactions flagged by the economic intelligence wing. The probe includes potential fund diversion and corporate governance violations.
The Government of India, through the Ministry of Corporate Affairs, issued a formal notice to Patanjali Ayurved Ltd., a traditional wellness and FMCG company based in Uttarakhand and co-founded by yoga guru Baba Ramdev, seeking clarification on financial transactions labeled “abnormal and dubious.”
According to sources familiar with the matter, the economic intelligence wing flagged several transactions by Patanjali, prompting the ministry to initiate a probe. While the exact figures involved were not disclosed due to the preliminary nature of the investigation, officials have confirmed that the company has approximately two months to respond.
The ministry’s investigation will also delve into potential corporate governance violations and fund diversions. Neither the Ministry of Corporate Affairs nor Patanjali Ayurved has issued an official comment on the matter as of now.
This is not the first time Patanjali or its affiliates have come under government scrutiny. In 2024, one of its units received show-cause notices for alleged tax non-compliance and unlawful refund claims, while India’s Supreme Court had earlier restrained the company from advertising its products as treatments for certain medical conditions.
While Patanjali Ayurved Ltd. remains privately held, its publicly listed arm, Patanjali Foods Ltd., has seen its stock price drop nearly 10% this month amid growing concerns.
The latest investigation raises fresh questions about financial transparency and oversight in one of India’s most prominent consumer goods empires.
