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Firm under lens for hoarding oxygen concentrators denies charge, says was helping people

The company, along with Delhi businessman Navneet Kalra, has been accused of hoarding oxygen concentrators.

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New Delhi: Days after 524 oxygen concentrators were seized from three plush eateries — Nege Ju, Khan Chacha and Town Hall — and a farmhouse of the Delhi-based firm Matrix Cellular, the latter company has denied accusations of hoarding and black-marketing, and said it was helping people amid the pandemic.

This, even as Delhi Police are going through the invoices of the devices, trying to ascertain the number of oxygen concentrators imported into the country as part of what it suspects is a black-marketing racket, and their prices.

Samudra Sarangi, lead counsel for Matrix Cellular, told ThePrint that the allegations of black-marketing and hoarding were “baseless”.

“Matrix imports and acquires oxygen concentrators by paying import duties, IGST/GST and all consequent sales to customers are online through banking channels,” Sarangi said. “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.”

“The vilification of Matrix is not only unfortunate, but also irresponsible,” the lawyer added. “Matrix ought to be working towards procuring more oxygen concentrators and making them available in India, rather than being victimised unfairly.”

On Saturday, Matrix Cellular moved the Delhi High Court challenging the police’s probe in the case and demanding that the seized goods be returned to them. The company also put out a statement calling it an “ill-conceived and erroneous investigation”.

While Matrix CEO Gourav Khanna and Vice-President Gaurav Suri were arrested Friday, police continue to investigate owner Gagan Dugal’s role in the case.

“Our investigation is on. An FIR has already been filed and seizures have been made. Arrests have been made on the basis of evidence,” Delhi Police Deputy Commissioner of Police (DCP) Chinmoy Biswal said, when asked about the firm’s claims. “More raids are going on to catch others involved in this offence.”

Well-known businessman Navneet Kalra, who owns the eateries including Khan Chacha, is on the run and his mobile phone continues to be switched off.

Kalra was allegedly one of the distributors of the concentrators. Purported WhatAapp chats and audio recordings of him selling the essential items have gone viral.

The case has been transferred to the Crime Branch and a special investigation team has been formed to interrogate the arrested men.


Also read: Eyewitness to mass grief: A chilling account in words, and photos, of a young photojournalist


‘Did nothing wrong’

While 32 oxygen concentrators were recovered from Nege Ju Restaurant and Bar, nine from Town Hall in Khan Market, and 96 from Khan Chacha, a total of 387 were seized from Matrix Cellular’s farmhouse in Chhatarpur, which is also a registered address of the company.

Of the 524 concentrators seized, the company claims that only 419 belong to it — 387 in the farmhouse and 32 in Nege Ju restaurant. Matrix Cellular has stated that due to surge in demand and long queues at the company farmhouse, they moved the devices to Nege Ju.

“There is no provision of law which currently specifies/restricts the price at which the oxygen concentrators can be sold,” the firm’s petition in the high court reads. “Similarly, there is absolutely no restriction on the total number of oxygen concentrators that can be stored. Therefore, on this ground alone, it is clear that there can be no offence committed by the petitioner or its employees.”

The petition, a copy of which is with ThePrint, includes as attachments purchase details, prices, invoice values, advance payments, and daily deliveries of the company.

According to the petition, the company bought 7,500 oxygen concentrators between 17 April and 3 May, at a cost of Rs 13 crore. It adds that, in April, 5,244 concentrators were imported and delivered. Another 1,858 were sold until 5 May (the day before the raid at Nege Ju). The imports of these were done through a firm — Classic Metals.

“Petitioner has in fact paid advance amounts for procuring more units of oxygen concentrators and the same is expected to arrive in India shortly,” the petition reads. “Therefore, it is clear that the petitioner is not engaging in any underhanded business practices, but is committed to ensuring that it brings to persons suffering in India the much needed oxygen concentrators.”

It also claims that the company is “one of the least expensive avenues available” for oxygen concentrators and that there are others selling them at a much higher price.

“The products were marked with MRP to ensure that even the distributors do not independently price the products as per their own whims and fancies,” Matrix Cellular claims.

(Edited by Arun Prashanth)


Also read: Oxygen touts, bogus suppliers, fake remdesivir — full-fledged Covid con industry up & running


 

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