Overview

• The Ministry of Corporate Affairs has issued a formal notice to Patanjali Ayurved Ltd. demanding explanations for transactions flagged as abnormal by federal economic intelligence agencies.
• Patanjali has approximately two months to respond to the notice before the ministry decides on further regulatory actions.
• Officials will investigate potential breaches of corporate governance and allegations of fund diversion within the closely held consumer goods company.
• Patanjali Foods Ltd., the group’s listed subsidiary, has seen its shares drop nearly 10 percent this month due to escalating government scrutiny.
• The herbal products firm faces Supreme Court limits on unsubstantiated health claims, show-cause notices over alleged tax violations and 26 active cases in Kerala courts.