Ramdev's Patanjali Ayurved denies receiving MCA probe notice; legal team mulls action

Patanjali Ayurved has denied receiving any communication from the Ministry of Corporate Affairs (MCA) regarding an alleged investigation into the company’s affairs, days after a media report claimed the ministry had initiated a probe under the Companies Act.

In a regulatory filing to stock exchanges on Sunday, Patanjali Foods Ltd, the listed entity of the Patanjali group, said it had sought confirmation from Patanjali Ayurved Ltd, the parent company.

"Patanjali Ayurved Limited has not received any communication from Ministry of Corporate Affairs for the proposed investigation... as appearing in mainstream media," the filing stated.

The clarification comes in response to a report in The Economic Times, which said the MCA had begun the process of probing Patanjali Ayurved over possible corporate governance and financial lapses.

According to the report, a notice under Section 210 of the Companies Act, which allows the government to investigate companies in the public interest, was sent to the firm.

Quoting sources, the report said the decision followed inputs from various government agencies regarding alleged financial irregularities.

Meanwhile, Patanjali Ayurved has said its legal counsel is reviewing the media report and is considering appropriate legal action.

“Their legal counsels are examining appropriate action in this regard.”

The development comes amid heightened regulatory scrutiny on Patanjali's business practices. In April, the Directorate General of GST Intelligence in Chandigarh issued a ₹27.5 crore show-cause notice to Patanjali Foods. The Supreme Court recently restrained the group from airing misleading advertisements, raising further concerns over its compliance practices.

Shares of Patanjali Foods were trading at ₹1711 apiece on the National Stock Exchange, 2.38% up from the previous close.