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Corporate Affairs Ministry Probes Patanjali Ayurved’s Suspicious Transactions

The notice compels Patanjali to justify flagged transactions within two months or risk enforcement measures.

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Baba Ramdev's Patanjali facing heat over 'suspicious' transactions, claims report

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.