Finding prima-facie violation of competition law, CCI has ordered a detailed probe into alleged abuse of dominance by the Indian arm of the US-based genetically modified seed giant Monsanto.
Shares of agri-biotechnology major Monsanto India fell by 4% on Thursday after fair trade regulator Competition Commission of India (CCI) ordered a detailed probe against its US-parent joint venture Mahyco Monsanto Biotech India Limited (MMBL) (a 50:50 joint venture between Mahyco and Monsanto Holdings Pvt Ltd).
At 1349 hours, the stock on BSE was trading down 2.58%, or Rs 51.10 at Rs 1,928.20 per piece.
Finding prima-facie violation of competition law, CCI has ordered a detailed probe into alleged abuse of dominance by the Indian arm of the US-based genetically modified seed giant Monsanto.
The stock fell by 3.99% to Rs 1,900.20 -- its 52-week low -- on BSE.
On NSE, it slipped 3.37 per cent to hit one-year low of Rs 1,910.
The majority order, passed by 6 out of 7 members including Chairman of the Competition Commission, follows two separate complaints filed against MMBL -- one by the Agriculture Ministry and another by three domestic seed companies -- alleging abuse of dominance in the country's Bt cotton seeds market.
The ministry had referred to the CCI complaints filed against MMBL, including about "abuse of dominant position by charging unreasonably high trait fees (royalty) for Bt cotton seeds".
Mahyco Monsato Biotech India Ltd (MMBL) has said it will cooperate with the investigation by CCI and expressed confidence that the allegation against the company relating to abuse of dominance would be "ultimately dismissed".
MMBL is a 50-50 joint venture between Monsanto and Mahyco.
Monsanto India is a subsidiary of US-based Monsanto, engaged in selling agri-inputs.
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