SC Summons Ramdev in Patanjali Ad Case; Stock Slips

19 Mar 2024 , 02:11 PM

The Supreme Court has ordered Baba Ramdev and Acharya Balkrishna to personally appear before the court in order to address the contempt charges brought against them for their continued dissemination of false advertising that made promises to permanently cure a number of illnesses.

The Court further observed that Patanjali kept up its deceptive advertising in spite of the lawyer for Patanjali’s guarantee, made in front of the Court in November of last year, that the company will stop producing them.

The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 and its Rules were broken by Patanjali Ayurved and its Managing Director, Acharya Balkrishna, who published product advertisements that the top court found to be in contempt in February.

The supreme court censured Patanjali Ayurved in November 2023 for their persistent publication of deceptive statements and marketing disparaging contemporary medical systems. Judge Amanullah followed by issuing a severe warning, threatening to impose a fine of ₹1 crore should these advertising persist.

After that, Patanjali Ayurved’s legal representative promised to pay ₹1 crore if similar commercials persisted.

Concerned over a “continuous, systematic, and unabated spread of misinformation” about allopathy and the contemporary medical system, the IMA filed the writ petition. Additionally, the petition claimed that false claims about the cure for certain diseases were made in Patanjali’s deceptive ads, disparaging allopathy.

On March 19, at 1:00 p.m., Patanjali Foods’ shares were trading at ₹1,375 on the BSE, 2.86% down.

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