Home Legal News Delhi HC Stays Anti- Profiteering Penalty on Patanjali

Delhi HC Stays Anti- Profiteering Penalty on Patanjali

by Preeti Dhoundiyal
Patanjali Ayurved


 The proceedings relating to anti profiteering penalty against Baba Ramdev‘s Patanjali Ayurved Limited have been stayed by the Delhi High Court till further orders.

However, directions by the Division Bench of Justice Manmohan and Justice Sanjeev Narula   to deposit the principal profiteered amount i.e. Rs. 75,08,64,019/- in six equated monthly installments commencing 15th August, 2020 have been imposed on Pantajali.

justice manmohan
Justice Manmohan
justice sanjeev narula
Justice Sanjeev Narula

In a writ petition filed by Patanjali which challenged the constitutionality and legality of National Anti-Profiteering Authority and Section 171 of the Central Goods and Services Tax Act and Rules 122, 126, 127 and 133 of the Central Goods and Services Tax Rules, the order has been received.

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The National Anti Profiteering Authority’s order dated 12.03.2020 on the ground that the same authority cannot be both the complainant and the adjudicating authority, has also been challenged by the petitioner.

Claims by the petitioner have been made that the said order passed by the authority is without jurisdiction and contrary to statutory provisions.

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Arguments by Patanjali’s Counsel

Arguments have been raised by Senior Advocate Aman Sinha representing the petitioner that the entire proceeding before National Anti Profiteering Authority is in breach of natural justice and violative of Articles 14 and 19(1)(g) of the Constitution as there is  absence of a methodology.

He further informed the court that in 35 similar matters this court has issued notice and listed the matters for hearing on 24th August, 2020.

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While issuing notice to the Central Government, the court directed both the parties to file brief written submissions.

Court’s Observations

‘Keeping in view the orders passed by this Court in Phillips India Limited vs. Union of India & Ors. (supra) and M/s. Samsonite South Asia Pvt. Ltd. vs. Union of India (supra) as well as the fact that no ground of financial hardship has been pleaded in the present writ petition, this Court directs the petitioner to deposit the principal profiteered sum.’

The matter will be taken up on August 24

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