Haridwar, June 2, 2025 — Patanjali Ayurved Limited, the flagship company of yoga guru Baba Ramdev, has denied receiving any formal communication from the Ministry of Corporate Affairs (MCA) regarding a reported investigation into alleged financial and corporate governance lapses.
In a filing to the stock exchanges on Sunday, the fast-moving consumer goods (FMCG) company said, “Patanjali Ayurved Limited has not received any communication from the Ministry of Corporate Affairs for any proposed investigation as mentioned in the media reports.”
The company further noted that its legal team is examining the matter and considering suitable legal steps if needed.
However, according to sources cited by The Economic Times, the MCA has already initiated a probe into the company under Section 210 of the Companies Act, 2013, which empowers the government to order an investigation if it is deemed necessary in the public interest or based on credible information.
The MCA’s move reportedly comes after inputs from various government agencies, raising concerns about possible financial irregularities and corporate governance issues within Patanjali Ayurved.
What Does Section 210 Mean?
Section 210 of the Companies Act allows the central government to assign the Registrar of Companies (RoC) or inspectors to investigate a company’s affairs if there’s reason to believe that:
- The business is not being conducted as per law,
- There are serious financial discrepancies, or
- The probe serves the public interest.
This provision gives the government broad powers to examine a company’s books, documents, and operations in detail.
Previous Issues with Authorities
This is not the first time Patanjali or its subsidiaries have faced regulatory scrutiny:
- In 2024, one of its units received show-cause notices for alleged tax non-payment and wrongful refund claims.
- The Supreme Court of India had also barred Patanjali from promoting its products as medical cures for certain diseases without scientific evidence.
These developments have added to the concerns about transparency in Patanjali’s operations, despite its significant market presence and popularity among Indian consumers.
Company’s Legal Stand
Patanjali’s denial signals a defensive approach as it seeks to counter the narrative in the media. The company stressed that it remains committed to compliance and is exploring legal options to challenge the reports.
A spokesperson for the company reiterated that unless a formal notice is received, the reports about a probe remain speculative and unverified.
What This Means for the Industry
Patanjali Ayurved, known for promoting Ayurvedic and herbal products, is one of the most prominent Indian FMCG companies. Any formal investigation could have implications for:
- Investor confidence in the sector,
- Regulatory oversight of other homegrown brands, and
- Public perception of traditional medicine-based companies.
Industry analysts suggest that while the company’s statement is clear, the MCA’s silence may indicate that preliminary steps are indeed underway behind the scenes.
What Happens Next?
If the MCA moves forward formally, the company could be asked to submit its financial records, tax filings, and governance practices for review. Depending on the findings, this may escalate into a full-fledged investigation or result in penalties or compliance directives.
Until then, all eyes are on whether Patanjali receives a formal notice and how it chooses to respond.