Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  Delhi HC restrains CCI from proceeding against Monsanto officials
BackBack

Delhi HC restrains CCI from proceeding against Monsanto officials

The Delhi high court says Competition Commission of India cannot probe Monsanto officials in absence of order holding the firm guilty of unfair trade practices

A file photo of the Delhi high Court. Mahyco Monsanto Biotech had contended that the Competition Commission of India (CCI) could not probe its top officials until the company was found in contravention of competition norms. Photo: Pradeep Gaur/MintPremium
A file photo of the Delhi high Court. Mahyco Monsanto Biotech had contended that the Competition Commission of India (CCI) could not probe its top officials until the company was found in contravention of competition norms. Photo: Pradeep Gaur/Mint

New Delhi: In a case brought by seed giant Mahyco Monsanto Biotech (India) Pvt. Ltd, a Delhi high court judge observed that the director general of the competition regulator could call upon top company officials for collecting information but could not proceed against them in the absence of an order holding the company guilty of unfair trade practices.

Mahyco Monsanto Biotech had contended that the Competition Commission of India (CCI) could not probe its top officials until the company was found in contravention of competition norms.

“Competition Act, 2002 does not permit the director general to investigate company officials without an order holding the company guilty of unfair trade practices," said Sandeep Sethi, counsel for Monsanto.

To this, the Centre clarified that in the absence of an adverse order against the company, Monsanto’s officials were being investigated for the sole purpose of gathering information.

Justice Sanjeev Sachdeva agreed that the director general could call upon top officials if it is was for the purpose of collecting information but could not proceed against them in the absence of an order holding the company guilty of unfair trade practices.

Monsanto and its group company, Mahyco Monsanto Biotech (India) Pvt. Ltd, had challenged CCI’s order of 26 July and objected to a probe of its officials while claiming that such a probe could only be allowed if a company does not comply with orders.

The CCI order had asked the seed company to cooperate with the investigation initiated against its officials.

Holding officials of a company responsible for anti-competitive and discriminatory practices while conducting affairs of the company, the order held that the director general was duty bound to look into the role of all persons behind the conduct of a company.

It further held that if an investigation was required to be made by the director general for unfair business practices, all aspects including ‘role of any person in charge of and responsible for conduct of the business’ would be considered.

Earlier this year, CCI had ordered a detailed probe against genetically modified seed major Monsanto based on prima facie evidence of violating competition norms.

The case will be heard next on 20 September.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 09 Sep 2016, 10:50 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App