Patanjali Food’s share price dropped nearly 4.5% to ₹1,352.10 by Tuesday midday following the Supreme Court’s order for Baba Ramdev and Acharya Balkrishna to personally appear in court.

What Happened: The directive comes in response to their failure to reply to a show cause notice in contempt proceedings for Patanjali Ayurved’s misleading advertisements, according to ANI.

A bench led by justices Hima Kohli and Ahsanuddin Amanullah expressed strong disapproval over Patanjali and Balkrishna’s neglect to respond to earlier court notices. These notices questioned why they should not face contempt proceedings for apparently breaking a court agreement.

The justices specifically demanded Ramdev explain why the court should not initiate contempt proceedings against him. The Indian Medical Association (IMA) has brought this larger case, accusing Ramdev of undermining vaccination efforts and modern medical practices through a defamation campaign.

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On February 27, the Supreme Court rebuked Patanjali Ayurved for its misleading ads and barred the company from marketing its products as cures for diseases. Notices were sent to both the company and its managing director, Balkrishna, probing their defiance of court orders and hinting at potential contempt charges.

Furthermore, the court prohibited Patanjali Ayurved and its leaders from releasing any media statements disparaging any medical system, adhering to their promise made on November 21 the previous year.

Price Action: Patanjali Foods Ltd. shares were trading 4.54% lower at ₹1,351.00 on Tuesday midday.

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