Patanjali Ayurved, the consumer goods conglomerate co-founded by yoga guru Baba Ramdev, is facing intensified scrutiny from Indian regulatory authorities. Allegations range from financial irregularities to misleading advertising practices, prompting investigations and legal actions that could significantly impact the company's operations and reputation. Financial Irregularities and Tax Evasion Allegations The Directorate General of GST Intelligence (DGGI) has initiated investigations into Patanjali Ayurved and its associated entities for alleged tax evasion and fraudulent Input Tax Credit (ITC) claims. According to sources, Patanjali Ayurved is accused of issuing tax invoices without actual supply of goods, involving a taxable value of ₹2,639.73 crore and an ITC amounting to ₹138.61 crore. Additionally, the company allegedly availed and utilized ITC amounting to ₹134.90 crore without actual receipt of goods, involving ₹2,596.39 crore. Patanjali Foods Ltd., another group company, is also under the DGGI's scanner for allegedly claiming fake ITC of about ₹27.46 crore based on invoices from non-existent firms. Penal proceedings have been initiated against key executives, including Director Ram Bharat and CFO YD Arya. Misleading Advertising and Regulatory Actions Patanjali's advertising practices have come under fire for making unsubstantiated claims about the efficacy of its products. The Supreme Court of India has criticized the company for publishing misleading advertisements, particularly those suggesting cures for chronic diseases like diabetes and asthma. Despite court directives to cease such advertisements, Patanjali continued to publish them, leading to contempt proceedings. In April 2024, the Uttarakhand state drug regulator suspended the manufacturing licenses of 14 Patanjali products due to repeated publication of misleading advertisements. These products included traditional medicines for asthma, bronchitis, and diabetes. The Supreme Court eventually closed the contempt proceedings in August 2024 after accepting unconditional apologies from Baba Ramdev and Patanjali's management. However, the court warned that any future breaches would not be taken lightly. Land Acquisition Controversies Beyond financial and advertising issues, Patanjali has faced allegations related to land acquisitions. Investigations have revealed that the company used shell entities to acquire large tracts of land in ecologically sensitive areas like the Aravalli Range in Haryana. These acquisitions were allegedly facilitated by the state's failure to enforce environmental protections, raising concerns about regulatory oversight and environmental degradation. In Uttarakhand, the state government filed 81 cases against Baba Ramdev and Patanjali Yogpeeth for violations of land reform and stamp duty laws. Of these, 29 cases pertain to illegal possession of land, while 52 involve tax and revenue evasion. Some properties held by the Patanjali trust were reportedly acquired through benami transactions, with no trace of the actual owners. Product Quality and Safety Concerns Patanjali's product quality has also been questioned. In 2017, the company's Divya Amla Juice and Shivlingi Beej were deemed substandard by the Ayurveda and Unani Office in Haridwar. Additionally, Nepal's drug regulator blacklisted Patanjali's Divya Pharmacy in December 2022 for failing to adhere to WHO's drug manufacturing standards. In 2016, a local court in Haridwar fined five Patanjali production units ₹11 lakh for misbranding and misleading advertisements. The court found that products marketed as being produced at Patanjali's units were actually manufactured elsewhere. Legal Challenges and Arrest Warrants Legal troubles for Patanjali have escalated, with arrest warrants issued against Baba Ramdev, Acharya Balkrishna, and Divya Pharmacy in Kerala for promoting healthcare products with unsubstantiated claims. The case, registered in October 2024, accuses Patanjali of violating the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954. Despite court summons, the accused failed to appear for hearings, leading to the issuance of warrants. Similar cases are pending in other states, including multiple cases in Kerala and Uttarakhand, indicating a pattern of legal challenges across the country. Patanjali Ayurved's rapid rise as a major player in India's consumer goods sector is now overshadowed by a series of legal and regulatory challenges. Allegations of financial misconduct, misleading advertising, questionable land acquisitions, and product quality issues have prompted investigations and legal actions from various government agencies. The outcomes of these investigations and legal proceedings will be crucial in determining Patanjali's future trajectory. As the company navigates these challenges, it faces the task of restoring public trust and ensuring compliance with regulatory standards to maintain its position in the market.