How an ominous guru became a billionaire

The notorious Baba Ramdev is a controversial figure on the Indian business scene, and regularly accused of having connections to sects and nationalist groups, both for business interests and ideological motivations. At the head of Patanjali, he amassed a fortune in obscure conditions. We have investigated to shed some light on the business dealings of a Yoga guru, who sometimes lacks a little zen.

Who is Baba Ramdev?

Born in 1965, Baba Ramdev was initially named Ram Krishna Yadav - it was only after his religious education that he changed his name to Swami Ramdev, nicknamed Baba. This personal rebranding marked the beginning of a formidable business enterprise, which eventually brought him to the top 10 ranking of influential figures in India.

Initially an Oprah-Winfrey-type TV presentator focused on yoga, Baba Ramdev patiently weaved an entire network of 15,000 “Ayurvedic shops” throughout India, selling various products such as shampoo, soap, and basic food supplies. Patanjali is also one of the largest consumers of advertisement in the country.

He cultivates an ambiguous political position: he claims no political ambitions, but has created a political movement named “Bharat Swabhiman”. The movement insists on iron-clad compliance, nationalism, rejection of foreign enterprises and the practice of yoga.

His official agenda against corruption is brutal: he wants corrupt officials to be executed, to suppress banknotes so that all transactions may be monitored by the State, and tight control measures against any citizen with connections abroad. Whether the aggressive measures are meant to deter anyone from messing with Patanjali, an alibi against one’s own corruption, or sincere, is anyone’s guess.

Controversies around Ramdev and Patanjali

But the righteous and straightforward façade cracks on a regular basis, both in dealings and attitude. Earlier this year, Baba Ramdev was recorded threatening a journalist who was asking for comments on a 2014 prophecy from Baba which turned out false. Displeased to be held accountable, Baba shortly answered: “Don’t ask me such questions. I am not a thekedar that I have to answer whatever you ask? I gave that statement and now I don’t want to answer. Do what you can.” “Ramdev goes on to threaten the reporter, saying that it will not be good for him if he would ask such questions again”, the Tribune further explains.

Beyond the odd outburst, which can be ascribed to anyone’s hot temper or dark sense of humor, more strategic and problematic dealings have come to light in recent years, bringing Ramdev much unwanted attention from authorities. India Today Rahul Shivshankar writes: “Even as yoga guru Baba Ramdev rides on the anti-corruption wave in the country with his own "bring black money back home" plank, the government has been slowly building a tight tax cheating case around him. The government charges heet has made damning observations, putting serious question mark over Ramdev's credibility. Government claims that Ramdev's trusts evaded paying service tax by passing off fees charged as donations.” Baba Ramdev, on the other hand, claims he is the one fighting corruption in the name of the Indian people. Some of his businesses have already been found guilty of concealing profit and evading tax.

Obscure financial connections

No charges have been brought before Patanjali for corruption of its own. But certain journalistic investigation rooms maintain their suspicions. CNBC investigator Jyotindra Dubey recently published her findings : “Many of these entities have three things in common (see Patanjali’s Investments in Subsidiaries and Patanjali’s Investments in Partnership Firms). One, they have no commercial operations. The only income they earn is through interest on funds parked in banks or any other financial instrument. Two, they have been incorporated through a maze of transactions. Three, they underwent at least one name change.”

Throughout this investigation, the name Poddar is constantly reminded, through the family members: Sunita, her husband Sarwan and their son Deepak. Patanjali maintains comfortable political connections with the consul general of Nepal in Glasgow, Sunita Poddar. Mrs Poddar is also one of Patanjali’s shareholders, and donated a near 1000-acre island to Baba Ramdev in 2009, for a value nearing 2 million pounds. Times of India reporter Josy Jospeh writes: “The couple has donated the island to Ramdev for setting up a pilgrimage centre, where yoga and ayurveda would be managed by qualified doctors, according to media reports. Patanjali Ayurved, in which the Poddar couple hold shares, recorded a total turnover of Rs 60.96 crore in 2008-09, the latest year for which financial filings are available on record. It made a profit of Rs 4.5 crore before taxation.”

Insofar as business connections are concerned, the same names appear as in the Scottish Island chapter. The most outstanding support providers and business partners are from the Poddar family, one of the most prominent names in the Indian diaspora.
Sunita Poddar is a wealthy Indian businesswoman and has long been in close contact with Baba Ramdev. Unlike Mr Ramdev, she keeps a very low-key digital profile, despite the magnitude of her worldly connections network. Sunita Poddar is also very active in business, namely as CEO of Oakminster, a network of care homes for the elderly, disabled and other types of vulnerable residents.

Sarwan Poddar, husband of Sunita, is also a staunch supporter. Times of India Namrata Singh writes: “NRI couple Sunita and Sarwan Poddar, followers of Ramdev, gave Balkrishna the first loan to kick-start the business. They have a 3% shareholding in Patanjali Ayurved.”

Deepak Poddar, son of Sunita and Sarwan, also seems to be entertaining business links with the guru. Deepak Poddar manages a supply business in Canada, specialized in medical goods and personal protection equipment. The business has been involved in a fraud case being tried in the United States, and suspected of similar dealings in another case in France.

Serious concerns for public health

Critics of the ethical management at the top of Patanjali will presumably see their concerns grow deeper still, as the tycoon the yoga mogul doesn’t seem all that concerned. The situation is all the more worrying as Patanjali and its commercial partners are surfing on the worldwide success of yoga and ayurveda to denigrate conventional medicine. Even if it means breaking the law and putting many lives in danger. For how much longer?

As Vasudevan Mukunth, the science editor of The Wire, writes : “Wait long enough and the allopathic medicine that Ramdev & co. are so fond of deriding will have to answer for the people whose health would have worsened because they delayed the proper treatment.”
“Over the course of the past week, Baba Ramdev’s Patanjali Ayurved has been plastering leading English and Hindi newspapers with advertisements for ayurvedic medicines that purportedly cure diabetes, reduce cholesterol and provide “instant benefit” for medical conditions such as fatty liver and liver cirrhosis”, News Laudry reported earlier this year. “(It) is a crime against the people of India”, the authors concluded.