The Delhi High Court has taken a critical stance against Patanjali Foods for its controversial chyawanprash advertisement, which referred to competitors' products as 'dhoka' (fraud or deception). This development comes as part of an ongoing legal battle between Dabur, a major player in the Ayurvedic products market, and Patanjali.

Key Highlights of the Court Proceedings

• Court's Stance: Justice Tejas Karia stated that while Patanjali can claim to be the best, it cannot label competitors as fraudulent. The court suggested using terms like 'inferior' instead.
• Case Status: The court has reserved its verdict on an interim injunction application in the disparaging ads case filed by Dabur against Patanjali.
• Dabur's Allegations: Dabur claims that Patanjali's advertisement falsely states its chyawanprash contains '51 Ayurvedic herbs and saffron', despite a 2014 government advisory deeming such claims misleading.
• Additional Complaint: Dabur contends that Patanjali's use of 'Special' as a prefix violates Drug Rules regarding misleading labelling of Ayurvedic formulations.

Patanjali's Defense

Patanjali's legal team has defended the advertisement, arguing that it falls under permissible puffery and hyperbole. They maintain that companies are allowed to claim superiority over competitors in their marketing strategies.

Implications for Advertising in the Ayurvedic Products Market

This case highlights the fine line between competitive advertising and disparagement in the Ayurvedic products market. The court's final decision could have significant implications for how companies in this sector approach their marketing strategies, particularly when making comparisons with competitors.

As the case unfolds, it will be interesting to see how the court balances the right to competitive advertising with the need to prevent unfair disparagement in the Ayurvedic products market. The verdict could potentially reshape advertising norms in this growing sector of India's consumer goods industry.

Patanjali Foods Limited has announced that its Board of Directors will meet on November 8, 2025, to consider declaring an interim dividend for shareholders for the financial year 2025-26. This development comes as part of the company's ongoing efforts to reward its shareholders.

Key Points

• Board Meeting Date: November 8, 2025
• Purpose: To consider declaring an interim dividend for FY 2025-26
• Record Date: November 13, 2025 (subject to board approval)
• Trading Window Closure: November 5 to November 8, 2025

Dividend Details

The company has set November 13, 2025, as the record date for determining shareholder eligibility for the interim dividend, pending board approval. This means that shareholders on record as of this date will be entitled to receive the dividend if declared.

Trading Window Closure

In compliance with insider trading regulations, Patanjali Foods has announced the closure of its trading window from November 5 to November 8, 2025. During this period, designated persons and those considered to have access to unpublished price-sensitive information are prohibited from trading in the company's securities.

Tax Implications

Shareholders are advised to update their tax residential status and PAN details with their respective depositories. The company has requested that all necessary documents be submitted to the company's registrar by November 13, 2025. This step is crucial for ensuring appropriate tax deduction at source on dividend payments, as dividend income is taxable in the hands of shareholders.

Investor Action Required

1. Shareholders holding shares in dematerialized mode should update their records, including tax residential status and PAN, with their respective depositories through their depository participants.
2. All shareholders are required to furnish necessary documents to the company's Registrar and Share Transfer Agent, Sarthak Global Limited, at investors@sarthakglobal.com by November 13, 2025.

Investors should note that the declaration of the interim dividend is subject to the approval of the Board of Directors. The company will provide further updates following the board meeting on November 8, 2025.

Shareholders are advised to stay informed about company announcements and consult with their financial advisors regarding the tax implications of dividend income.