Patanjali Ayurved has been directed by the highest judicial authority to cease advertising or endorsing products that claim to cure diseases which they legally cannot claim to cure. The company, along with its prominent leaders, has been explicitly instructed not to make any allegations against other medical practices such as allopathy in any form of media. The stringent reprimand came after Patanjali Ayurved released an advertisement suggesting ‘permanent relief’, prompting questions about the legitimacy of their claims in treating conditions like blood pressure, diabetes, arthritis, asthma, and obesity.
On a separate note, the associate company Patanjali Foods experienced a decline of over 3 percent in its share value in early trading on February 28. This came about despite the reassurance provided by Patanjali Foods to its stakeholders that the observations made by the Supreme Court concerning the misleading advertisements would not impact its business operations or financials. This assurance came after a noticeable upturn in share value across the previous month and six months, with a mild downturn during the latest trading session to Rs 1581.80. Patanjali Foods has remained distinct in its market stance, ensuring investors that the scrutiny faced by Patanjali Ayurved is unrelated to its ongoing business endeavors.
In spite of these challenges, Patanjali Foods reported a turnover exceeding Rs 7,900 crore for the December quarter, even though its standalone net profit saw a slight decrease from the previous September quarter’s figures. These events have unfolded amidst a writ petition filed by the Indian Medical Association concerning contentious advertisements, which led the court to restrict Patanjali Ayurved from disseminating misleading claims about their products in the future and to avoid downplaying the issue in any public statements or press releases.