Baba Ramdev's Patanjali faces government probe over suspicious transactions
What's the story
The Indian government has asked Patanjali Ayurved, a company co-founded by yoga guru Baba Ramdev, to explain some suspicious transactions.
The Corporate Affairs Ministry issued the notice after the federal economic intelligence wing flagged these transactions as abnormal and dubious.
The exact amount involved in these transactions has not been disclosed due to the early stage of the probe.
Response deadline
Patanjali given 2 months to respond
Patanjali Ayurved has been given around two months to respond to the notice issued by the Corporate Affairs Ministry, as per Bloomberg.
The ministry is also looking into possible corporate governance violations and fund diversions in the company.
This is not the first time Patanjali Ayurved or its affiliates have come under government scrutiny over tax non-payment and misleading product claims.
Past issues
Patanjali's previous legal challenges
Last year, a unit of Patanjali Ayurved received show-cause notices from the government for alleged non-payment of taxes and wrongful refunds.
Separately, India's top court restrained the company from marketing its products as a cure for certain ailments.
Despite these controversies, Patanjali Ayurved remains a closely held company while its unit, Patanjali Foods Ltd., is publicly traded with shares down nearly 10% this month alone.