The Madras High Court on Thursday passed an absolute injunction order against Baba Ramdev's Patanjali Ayurved over its controversial 'Coronil' drug which was marketed as a cure for COVID-19.
The HC ordered Patanjali to stop using the trademark 'Coronil' as there was no evidence that it could cure coronavirus and the coinage of the same was without due cause and with the intention to "mislead the general public".
The order, which ran over 100 pages, stated that Patanjali had "directly infringed upon the very word 'Coronil' and ruled in favour of a Chennai-based company Arudra Engineering which had claimed ownership of the name. The plaintiff had contended that Coronil-92B was its own registered trademark since 1993 for an "acid inhibitor for industrial cleaning".
"It must be kept in mind, that there is no cure for Coronavirus anywhere in the world as on date. People are dying. In these tragic times, the defendants seek to make money, money, money. They seek to exploit the fear among the people by projecting that they could cure Coronavirus. There is no cause much less due cause, and much less just cause to permit the defendants from using the word 'Coronil'," the bench observed.
The plaintiff had contested that their right over the trademark would be valid until 2027.
The HC slapped Patanjali with a total fine of Rs 10 lakh, with 5 lakh to go to the Dean, Adyar Cancer Institute and 5 lakh to go to the Dena, Government Yoga and Naturopathy Medical College & Hospital, Arumbakkam. The bench noted that "a simple check with the Trade Marks Registry" would have revealed that 'Coronil' was already a registered trademark.
The Madras HC had restrained Patanjali from using the Coronil trademark in July,
The move a day after Ramdev said his Haridwar-based company was struggling to meet the demand for Coronil, with daily demand for 10 lakh packs but the ability to produce only one lakh.
"Today we have a demand of 10 lakh packs of Coronil daily and we are able to supply only one lakh," Ramdev claimed at an ASSOCHAM virtual series.
Patanjali had initially marketed Coronil as a cure for COVID-19. However, the AYUSH ministry placed restrictions on such marketing and ordered the company to depict the product as an immunity booster instead.
Earlier in June, Ramdev had claimed that Coronil can cure Covid-19 patients. However, the AYUSH Ministry immediately put restrictions on Patanjali over selling it. Later, the Union ministry confirmed that Patanjali can sell the product only as immunity booster but not as a cure for COVID-19.
The Madras High Court had restrained Patanjali from using Coronil trademark till July 30, over a petition filed a Chennai-based company.
Ramdev suggested industry leaders to work with honesty to build a brand on which the people have trust and it needs a long term approach.
To maintain that trust, you have to work honestly with dedication, he said.
He also asked people to have patience during the pandemic in order to come out of the health crisis.
According to him, Patanjali has become a brand, which is a combined result of efforts, respect for traditional knowledge and hard work.
Now Patanjali has become a big brand. the success mantra of Patanjali is - knowledge, faith, respect and efforts only, he said.
Several companies mocked on us with derision saying that Patanjali has faith but not science, he added.
Today we have over 500 scientists working for us. We could not have done this, if we had no knowledge about it, he said.
According to him though he believes in gurushishya tradition, religion and culture but also believe in scientific temperament.
We have made our cow ghee a Rs 1,300-1,400 crore annual brand, he said adding that several companies, operating in the segment, failed to create such a big brand in the segment.
Patanjali group has an estimated turnover of around 10,500 crore. It had acquired debt-ridden Ruchi Soya in a corporate insolvency resolution process for around Rs 4,350 crore after competing with Adani Group.
Ayurved had reported a turnover of Rs 8,329 crore in FY2018-19. However, total turnover of the group was higher as Patanjali Ayurved consists of its FMCG business and Ayurvedic medicines.
Businesses like biscuits, noodles, dairy business, solar panels and apparels are not part of Patanjali Ayurved Ltd. PTI KRH MR 08052218