New Delhi: Matrix Cellular, the Delhi-based firm being investigated for allegedly hoarding oxygen concentrators and engaging in black-marketing, sold the devices to “needy” people at “profit margins of Rs 40,000 to Rs 42,000”, police have said in their status report. The firm, it added, took undue advantage of the Covid crisis for “wrongful gains”.
The status report, accessed by ThePrint, was filed Monday in the Delhi High Court, which is hearing a petition filed by Matrix Cellular against the Delhi Police’s hoarding probe against the company.
The firm has denied the allegations levelled by police and claimed that they were trying to help people seeking oxygen support amid the pandemic.
While Matrix Cellular says it marked the devices with the MRP to ensure buyers aren’t overcharged even by distributors, Delhi Police claimed otherwise in its status report. The firm, Delhi Police said, violated a 7 May order passed by the UT administration that prohibits stakeholders from selling key Covid-related medical equipment and drugs above their MRP.
Matrix Cellular moved the Delhi High Court Saturday, days after Delhi Police recovered 524 oxygen concentrators from four sites in raids conducted over two days. The bulk of these, 387, were found at a farmhouse owned by Matrix Cellular in Chhatarpur, and the remaining at three high-profile Delhi bars and restaurants — 32 at Nege Ju, 9 at Town Hall, and 96 at Khan Chacha.
Five persons, including Matrix Cellular CEO Gaurav Khanna, have been arrested in the case so far. The accused have been booked for alleged cheating, and under sections of the Epidemic Diseases Act, and Essential Commodities Act.
The case has been transferred to the Crime Branch and a special investigation team has been formed to interrogate the accused. The suspected kingpin, Navneet Kalra, a Delhi-based businessman, remains at large. Delhi Police Monday issued a lookout notice against Kalra.
Also Read: Firm under lens for hoarding oxygen concentrators denies charge, says was helping people
‘Undue advantage’
In the status report, Delhi Police has said their initial investigation revealed Matrix Cellular was taking “undue advantage” of the Covid crisis and made “wrongful pecuniary gain”.
“The company has admitted the procurement price of the medical equipment ranging between Rs 12,500 and Rs 20,669, and selling (them at) up to Rs 70,000 and above per piece,” it added.
Around 300-350 of these O2 concentrators were sold to Kalra, they said.
“Accused hatched a deep-rooted conspiracy to gain wrongfully, using the painfully pathetic situation caused due to the pandemic and compelling needy persons to part with their hard-earned money much in excess of the acceptable international market rates of O2 concentrators,” police added.
Some social media suggest the devices were of “deficient quality”, they said, adding that their suitability needs to be evaluated by medical experts.
Delhi Police have stated that the firm started dealing in Covid-19-related items after their operations were badly affected by the pandemic last year. It believes the firm began importing and dealing with O2 concentrators from China and other countries as far back as October 2020.
In their status report, police said while the Delhi government had banned movement and running of restaurants during the ongoing lockdown, the products continued to be sold at Nege Ju.
Police said 428 of the total oxygen concentrators seized “have already been released by the competent authority for use at Covid care centres”.
‘Baseless charges’
In arresting and booking the suspects, police have cited a Delhi High Court order of 2 May that calls for action against those found to be hoarding medicines and medical equipment and selling them above MRP. The firm, however, claims that all goods were sold at MRP.
Matrix Cellular has called the investigation “misguided” and “baseless”. They have said in their petition that 419 of the 524 concentrators seized belong to them (387 found in farmhouse and 32 at Nege Ju), and demanded their return. The firm has maintained that the oxygen concentrators weren’t sold at exorbitant prices, and that they were dealing in the goods legally by paying all taxes and import duties.
The firm’s legal counsel Samudra Sarangi told ThePrint that the allegation of “black-marketing and hoarding is baseless in law”. “As much as 95 per cent of the stock sold to the customers is below Rs 50,000; so the allegation of exorbitant pricing by Matrix is also incorrect,” she said.
(Edited by Sunanda Ranjan)
Also Read: HC asks Centre, Delhi govt to prevent hoarding of medicines, equipment for Covid treatment