No raids till further orders: Maharashtra tells Bombay HC in Patanjali labelling case

The Maharashtra government on Wednesday informed the Bombay High Court that it will not carry out raids and a confiscation drive against ayurvedic products over allegedly misleading ‘indication’ labels until a further order from the court.

The state government’s undertaking came in a writ petition filed by Patanjali Ayurved Ltd and Divya Pharmacy, in which the petitioner companies claimed that indication labelling has been an industry-wide practice in Ayurveda; therefore, it cannot be construed as misleading and should not be treated as a company-specific violation.

The state government had conducted raids on companies, alleging misleading ‘indication’ labels of petitioner companies claiming a cure for cancer, diabetes, and other ailments.

The division bench of acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad was hearing a writ petition filed by Divya Pharmacy and Patanjali Ayurved, challenging the action initiated by the state government’s Food and Drug Administration (FDA) department under the Drugs and Magic Remedies (Objectionable Advertisements) Act related to labels on Ayurvedic products of the petitioners.

The detailed order was not uploaded till the time of filing the story.

The genesis of the case lies in the action of the state Food and Drug Administration, which recently seized products manufactured by petitioner companies, alleging that they were misbranded under provisions governing objectionable advertisements and therapeutic claims.

Before the department’s undertaking in the court, senior counsels Dr Birendra Saraf and Ashish Kamat, appearing for the petitioner companies, argued that references to ailments and therapeutic indications are a long-established feature of Ayurvedic medicine labelling and that the issue required a nationwide policy response rather than state-by-state enforcement.

“Every possible Ayurvedic drug sold in the market has it (indication labelling). There should not be an unfair condition put only on the petitioners, which takes away their entire plus marketability, while others are permitted to do it,” argued the petitioner companies through their lawyers.

The court subsequently directed the Union government to clarify its position within two weeks.

While appearing for the government, Tushar Mehta, Solicitor General representing the central government, told the court that the government intended to adopt a uniform position on labelling and advertising across all states.

In the case, NPS Chawla and Surekh Kant Baxy of Aekom Legal, along with counsel Nisha Kaba, appeared for Patanjali Ayurveda and Divya Pharmacy. Counsel Ajay Patil, M.M. Deshmukh, and Pallavi N. Dabholkar appeared for the state government in the case.

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