After the Supreme Court (SC) came down heavily on yoga guru Baba Ramdev and his associate and Patanjali Ayurved managing director Acharya Balkrishna, the company on Wednesday tendered an unconditional apology over the case of misleading advertisements.
In an affidavit submitted in the Supreme Court, Balkrishna assures not to create such ads in future. He says the company intended to only promote a healthier life by offering Patanjali Ayurved products.
"...the deponent begs to submit that its intention is only to exhort the citizens of this country to lead a healthier life by consuming products of respondent No. 5 including products for lifestyle ailments," the affidavit says.
Patanjali Foods this week clarified the Supreme Court's directive on yoga guru Baba Ramdev to appear personally before the top court had no bearing on Patanjali Foods.
Patanjali Foods Limited (PFL) is an independent listed entity and operates in the space of edible oil, food FMCG products, oil palm plantation and windmills only, it said.
While hearing a case on alleged misleading advertisement claims by Patanjali Ayurved, an SC bench of justices Hima Kohli and Ahsanuddin Amanullah had on March 19, 2024, passed an order for the personal appearance of Ramdev in the case, saying he and his associate Acharya Balkrishna, who's also the Patanjali chairman, were prima facie violating the Sections 3 and 4 of the Drugs and magic Remedies (Objectionable Advertisements) Act, 1954.
Earlier on February 27, 2024, the Supreme Court had asked Patanjali Ayurved to stop promoting and marketing ayurvedic products, which it claimed to cure critical illnesses like heart issues and asthma. The SC ruling had come following a petition by the Indian Medical Association (IMA), which accused the company of claiming to completely cure sugar and asthma, among other illnesses via yoga.
The SC bench had said the company was taking the “country for a ride” by making misleading claims without “empirical evidence”. The SC had also pulled up the government for not keeping a check on such ads. It said Patanjali can't advertise any product that claims to cure ailments specified in the Drugs and Magic Remedies (Objectionable Advertisements) Act.
Shares of Patanjali Foods are trading 1.20% up at ₹1,369.25 on the BSE today, compared to the previous session close of ₹1,352.95. The stock has fallen 12.67% in the calendar year so far, while it is up 52.92% in the one-year period.
Patanjali Food had clocked a profit of ₹216.54 crore in the quarter ended December as against ₹254.54 crore in the year-ago period. Profit margin fell to 2.74% in Q3 FY24 from 3.24% a year ago. The company's revenue from operations stood at ₹7,910.70 crore.
