The notice was sent by the Uttarakhand division of the apex body of Indian doctors.
The IMA, in this notice, stated that Rs 1,000 crore will be demanded from him if he fails to tender an apology for his controversial remarks via a video or a letter within 15 days.
IMA Uttarakhand unit President Dr Ajay Khanna said Ramdev does not have sound knowledge and is engaging in rhetorics.
"I am ready for face-to-face with Baba Ramdev. Ramdev does not have a lot of knowledge about allopathy, despite that he is against allopathy and the doctors associated with it. He is making rhetorical statements," said Dr Khanna.
He added that Ramdev's remarks has reduces the morale of doctors and frontline workers amid the COVID-19 pandemic. He also stressed that Ramdev is "constantly lying to sell his medicines".
Facing backlash and after a letter from Union Health Minister Dr Harsh Vardhan who termed his remarks as "extremely unfortunate", Ramdev withdrew his statement but did not apologize.
"Your statement on allopathy can break the morale of healthcare workers and weaken our fight against COVID-19," Vardhan said and added that doctors are fighting day and night to save people"s lives.
In his letter, Vardhan asked Ramdev to withdraw his statement on allopathy and said the remarks disrespects "corona warriors" and hurts the sentiments of the country.
Earlier, IMA had lambasted Ramdev for his remarks on allopathy medicine and demanded that the Centre take strict action against him.
In response, Patanjali Yogpeeth said yoga guru Swami Ramdev was reading out a WhatsApp forwarded message in the video that has gone viral on social media.