Shares of FMCG company Patanjali Foods saw a 4.13 per cent dip going down to INR 1,555 per share on the NSE a day after the Supreme Court issued notices to Baba Ramdev and Acharya Balakrishnan and questioned why contempt proceedings should not be initiated against them for violating the orders of the apex court.
IMA Has Contested How The Company Can Claim To Completely Cure Diabetes And Asthma Through Yoga
Patanjali Ayurved has been restrained by court orders from advertising and marketing its products meant to cure ailments-disorders till further orders are issued. The apex court also imposed restrictions on Patanjali Ayurved prohibiting the promotion of products that claim to cure diseases like heart ailments and asthma. The decision came in response to evidence presented by the Indian Medical Association (IMA) that included a Patanjali advertisement in The Hindu newspaper and statements made during a press conference during which the company asserted to have completely cured sugar and asthma through yoga.
However, Patanjali Foods, in a regulatory filing made on the same day, stated, “The observations of the Supreme Court of India do not relate to Patanjali Foods Limited which is an independent listed entity and operates in the space of edible oil and food FMCG products only.”
It further added that the observations do not have any bearing on the regular business operations or the financial performance of Patanjali Foods.
Apex Court’s Order On The Back Of Legal Dispute With IMA
The apex court order came on the back of an ongoing legal dispute with the Indian Medical Association (IMA), which has accused Patanjali of allegedly disparaging other forms of conventional medicines. The court stated that the company had violated its assurance to judges last year in the ongoing case that it would not publish advertisements that make “casual statements claiming medicinal efficacy”.
The judges also asked Patanjali to explain why it should not initiate contempt of court proceedings against the company.
The Indian Medical Association (IMA) told the court that the company had continued to publish newspaper ads claiming to offer a “permanent solution” for health conditions such as blood pressure, asthma, and diabetes.
Patanjali sells a wide range of personal care, health care including nutritional products like honey, chawanprash and natural plant juices as well as Ayurvedic medicines.
Bengali