Maharashtra has banned the sale and distribution of the genetically modified cotton seeds of Maharashtra Hybrid Seeds Company (Mahyco) with immediate effect on charges of supplying inferior quality seeds, a senior state government official said on Thursday.

?Mahyco has not received any official communication from the Maharashtra government about the cancellation of its license to sell Bt cotton seeds in the state,? the company said in a statement. ?Mahyco has complied with all the guidelines set by the state agriculture department and has always provided required information to the agriculture department….We will address the concerns raised by the authority once we have received the official communication from the department,? the statement added.

The controller and director, commissionerate of agriculture (Inputs and Quality Control), the licensing authority, decided to impose the ban late Wednesday under the Maharashtra Cotton Seed Rules, 2010.

In May, Mahyco was issued a notice by the state government stating that the company had shared incorrect information about the supply of its Bt cotton seeds –MRC-7351 and MRC-7326– and had failed to supply the promised quantities in Beed district. The notice also stated that Mahyco had not co-operated with local authorities.

Mahyco, however, refuted the allegations of violations of any rules and said it has supplied 8,61,906 packets of various cotton hybrids against its sales plan of 6,50,000 packets to its distributors in the state for this Kharif season. The supply included 3,37,275 packets against its sales plan of 2,75,000 of MRC-7351 Bt cotton seeds in the state. The ban assumes significance as the seed sales in the state accounts for a substanital chunk of the company?s revenue.