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Patanjali Foods shares dropped 3.3 per cent on the NSE
The drug regulator for the state of Uttarakhand has suspended manufacturing licences for 14 products of Baba Ramdev’s Patanjali Ayurved, following which shares of the company saw a decline on the National Stock Exchange (NSE) of India.
The suspension in Uttarakhand comes in the wake of Patanjali facing Supreme Court wrath over advertisements that the apex court deems deceptive of some of the company’s ayurvedic medication products. Following the suspension, shares of Patanjali Foods traded at Rs 1,512, marking a 3.3 per cent fall on the NSE.
Among products of Patanjali subsidiary Divya Pharmacy that face suspension of manufacturing licences are BP Grit, Bronchom, Lipidom, Madhugrit, Madhunashini Vati Extra Power, Mukta Vati Extra Power, Swasari Avaleha, Swasari Gold, Swasari Pravahi and Swasari Vati.
The suspension by the drug regulator of Uttarakhand was issued on April 15 but is yet to be made public, according to the news agency Reuters that has reviewed the order. A criminal complaint has also been initiated against Patanjali Ayurved, Ramdev and his aide Acharya Balkrishna, with allegation that these parties had violated the Drugs And Magic Remedies Act.
Last month, the Supreme Court ordered Patanjali Ayurved, Ramdev and Balakrishna to tender a public apology for not obeying its earlier directive pertaining to the company’s misleading advertisements.
In November 2023, the Supreme Court had warned Patanjali Ayurved against “false” and “misleading” claims in advertisements of its medicinal products, in the wake of a petition filed by the Indian Medical Association (IMA).
On February 27, the court had directed Patanjali to immediately stop all commercials of the company’s medicinal products, in print as well as electronic media.
The IMA petition highlighted how several advertisements of Patanjali medicinal products allegedly depict the practice of allopathy and allopathic doctors in a negative manner. According to the Patanjali commercials, practitioners of medicine were dying despite using modern medicines, the IMA advocate had stated in court.
During last week’s hearings, the bench of Justices Hima Kohli and Ahsanuddin Amanullah asked specific questions to the defendants regarding the charges that they face. The judges will have to take a call on charging Ramdev with contempt.