Monsanto approaches Delhi HC against CCI order

Challenges merits of the decision on the ground its execs can only be probed, if the biotech major refuses to comply with CCI directions

US biotechnology giant Monsanto moved the Delhi High Court on Monday, challenging a Competition Commission of India (CCI) order rejecting the company’s pleas to quash an ongoing probe against alleged unfair business practices undertaken by its top executives in the Indian seed market.
 

The CCI had rejected the company’s review pleas on July 26, which sought to remove the officials concerned from the ambit of the probe. During the proceedings, Monsanto had contended that the regulator did not have the authority to investigate the affairs of the company’s executives unless violations of competition rules were made out against them.
 

The CCI refused to find merit in the applications and held that it was a settled position of law that investigations against a company and its persons in charge were capable of progressing simultaneously.
 

While rejecting the applications, the CCI had issued directions to the company and its officials to cooperate with the probe such that the investigations could be completed in a time-bound manner.
 

Monsanto has challenged the merits of the CCI decision in the Delhi High Court, on the ground that its executives can only be probed, if the company refuses to comply with CCI directions and not otherwise.
 

In Monday’s proceedings, advocate Ajit Warrier, counsel for Monsanto, informed the court that the company will be filing a further application listing additional grounds against the July 26 order. Justice Sanjeev Sachdeva has listed the matter for hearing on August 31.
 

The CCI had ordered a detailed probe into the activities of the genetically modified seed manufacturer earlier this year, on complaints received from several entities, including the National Seeds Association of India and the ministry of agriculture, after finding prima-facie evidence of violations of Indian competition laws.
 

After the direction of the initial probe in February, the competition regulator clubbed three additional complaints against Monsanto later in June, adding to the worries of the company.