Patanjali advertising case: SC asks Ramdev to appear in person, stock down 3.5%

Ramdev

The Supreme Court has asked Baba Ramdev and Acharya Balkrishna to appear personally before the court to respond to contempt proceedings initiated for continuing to run misleading advertisements that claimed to permanently cure several diseases.

The Court also noted that Patanjali continued misleading advertisements despite the assurance given by Patanjali's counsel last November before the Court that it would refrain from making such advertisements.

In February, the apex court issued a contempt notice  against Patanjali Ayurved and its Managing Director Acharya Balkrishna for publishing advertisements of products in violation of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 and its Rules.

In November 2023, the apex court reprimanded Patanjali Ayurved for continuing to publish misleading claims and advertisements against modern systems of medicine. Justice Amanullah went on to issue a stern warning of imposing a sum of Rs 1 crore in case such advertisements are continued.

Following this, the counsel for Patanjali Ayurved assured the sum of Rs 1 crore in case such advertisements are continued.

The IMA filed the writ petition, raising concerns over what it termed a "continuous, systematic, and unabated spread of misinformation" regarding allopathy and the modern system of medicine. The petition also asserted that Patanjali's misleading advertisements disparage allopathy and make false claims about curing certain diseases.

At 1120 hours on March 19, Patanjali Foods' shares on BSE were trading 3.5 percent lower at Rs 1,366.