Hyderabad: Based on recommendations of the district-level Committees as illegal, the Hyderabad HC has declared the action of the united AP government in cancelling licences of several seed companies.

The cancellation of licences based on recommendations in the year 2004, 2005 and 2006 for alleged supply of spurious seeds, justice A Ramalingeswara Rao was disposing of a batch writ petitions by Maharashtra Hybrid Seeds Company Limited , M/s Leadbeter Seeds Private Limited and others challenging.

District level committees were constituted through a MoU between the companies and the government not under the provisions of the Seeds Act, 1966 and Seeds Order 1983, this was noted by judge while disposing of the petitions.

The judge ruled that, only in accordance with the conditions of license and the provisions of the Seeds Act, the licenses of seed dealers or producers can be cancelled.

At this stage it is noticed that the amounts already deposited by the petitioners are in deposit with the appellate authorities subject to the result of the present Writ Petitions. In view of the loss sustained by ryots it was suggested to the counsel for petitioners that the said amount can be utilised for compensating ryots whoever can be identified though there is little possibility of identifying such ryots at this length of time of 12 years, said the judge.

It is left open to the government either to compensate on pro-rata basis to farmers who sustained loss or utilise the said amount for the welfare of the farmers, as the petitioners agreed for not making any claim for those deposits, said judge.