Fix formula for MRP of oxygen concentrators: Delhi HC to Centre

A bench of justices Vipin Sanghi and Rekha Palli said that the government can fix a principle to decide the MRP of the concentrators after the Centre’s counsel said it was not possible to fix prices because the devices come from various exporters who may stop supplying to India if the rates were fixed.

The Delhi high court on Monday sought to know why the Centre was not fixing a formula to decide the Maximum Retail Price (MRP) of oxygen concentrators even as devices were being black marketed and sold at exorbitant prices.

The high court said it was not asking the government to fix a price in rupee or paisa, but to fix a principle on which oxygen concentrators will be charged. (Mint file photo)

A bench of justices Vipin Sanghi and Rekha Palli said that the government can fix a principle to decide the MRP of the concentrators after the Centre’s counsel said it was not possible to fix prices because the devices come from various exporters who may stop supplying to India if the rates were fixed.

The high court said it was not asking the government to fix a price in rupee or paisa, but to fix a principle on which oxygen concentrators will be charged. The government should understand that if this is not an extraordinary circumstance where it should intervene, then what will be, the high court added,

The court suggested fixing a formula like the landed price of the product, plus duty charge, plus 15% profit margin.

“There has to be some limit to it (the price). It cannot be limitless. Tomorrow some Chinese manufacturer will say he will sell it at 5X rate, it cannot be allowed…” the court said.

It added: “As a government, it is your responsibility that people are actually able to afford the product and not have to pay through their nose. They can’t be taken for a ride. Shortage of a product cannot be taken advantage of. Should you not think of the consumer?”

Central government’s counsel Kirtiman Singh and Amit Mahajan had said the landed price was ultimately determined by the exporter, and it was not possible for the government to fix the prices as there are different concentrators in the market with different prices, sizes, and names.