Delhi High Court refuses to quash case on black marketing of oxygen concentrators during COVID-19

The Delhi High Court recently refused to quash criminal proceedings initiated against Matrix Cellular, which was accused of hoarding and selling defective COVID-19 treatment-related equipment at exorbitant prices in the midst of the second wave of the pandemic [Matrix Cellular International Services Limited & Ors v. State NCT of Delhi]..Justice Dinesh Kumar Sharma refused to quash the proceedings while the investigation is still pending..While rejecting the petition filed by Matrix Cellular, the Court considered the gravity of the allegations that the petitioners sold defective oxygen concentrators at inflated prices during the peak of the pandemic.“Still, the allegations of selling the un-tested oxygen concentrators to get wrongful gains, taking undue advantage of the crisis and acute shortage of oxygen supply caused due to the pandemic, and compelling needy persons to part with their hard-earned money cannot be ignored. The margin of profit was very high, especially in view of the ongoing pandemic.".The Court also noted,“Further, the fact that the oxygen concentrators sold by the petitioners were not in compliance with the required parameters recommended by the WHO to help patients suffering from COVID-19 is still to be investigated.".The case stems from police raids conducted during the second wave of COVID-19 at various places in Delhi, where oxygen cylinders, oxygen concentrators, KN-95 masks and other equipment were being hoarded even as these were in short supply.A first information report (FIR) was registered against the alleged hoarders and black marketers for the offences of cheating and negligent acts spreading life threatening disease..No release of seized oxygen concentrator; prima facie Matrix Cellular in violation of order to not increase price: Delhi High Court.Counsel for the petitioners argued that no case of cheating was made out, and that the purchase of the equipment was made in a legitimate manner. Further, during the pandemic, Matrix was designated as a Collection Centre to streamline operations and manage the overwhelming demand effectively, which is being taken as hoarding, he submitted.The Court observed that an FIR may be quashed only in exceptional cases."However, it is made clear the petitioner is at liberty to approach the appropriate forum after the completion of the investigation. The contentions raised by the petitioner are kept open for consideration at a later stage. No expression made herein shall tantamount to be expression on the merits of the case," the order stated..Senior Advocate Mohit Mathur and Advocates Samudra Sarangi, Abhilasha Khanna and Tanay Chaturvedi appeared for the petitioners.Additional Standing Counsel (Criminal) Amol Sinha, with Advocates Kshitiz Garg, Ashvini Kumar and Chavi Lazarus, appeared for the State..[Read order]