Monsanto challenges MRTPC interim order

New Delhi, May 16 (UNI) The US based bio-tech major Monsanto today challenged in the Supreme Court the interim order passed by the Monopolies and Restrictive Trade Practices Commission (MRTPC) directing it to reduce its technology fee in India to bring it to the level of the fee charged by it in China.

The MRTPC vide its impugned order had directed the US company to slash its trade value from Rs 900 per 450 gram of Bt cotton seed to Rs 40 per 450 gram. Its Indian subsidiary Mahyco Monsanto Bio Tech was directed not to charge trade value of Rs 900 for a packet of 450 gram of Bt cotton seed and to fix a reasonable trade value considering the trade value that is being charged by its parent company in neighbouring countries like China.

The 54 page interim order came on an application filed by Andhra Pradesh government before MRTPC alleging that the exorbitant price of cotton seed entrapped farmers in heavy debts leading to farmers suicides.

The company in its appeal filed in the Supreme Court today has contended that the impugned order passed under section 12 (A) of MRTPC act was without jurisdiction as MRTPC can not fix prices of a product.

The company has also pleaded thst such an order will have an adverse effect on flow of foreign investment in India.

The company has also pleaded that MRTPC has erred in holding that the term royalty could not be applied since there was no patent of the technology of the US based company in India.

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