SC issues notice to Delhi police on plea to release seized oxygen concentrators

A three-judge bench headed by justice RF Nariman sought response of the Delhi police in three weeks. The petitioner firm challenged a May 27 order of the Delhi high court refusing to release oxygen concentrators worth ₹3.5 crore lying idle with the police as case property.

The Supreme Court on Tuesday issued notice to the Delhi Police on a petition filed by Matrix Cellular (International) Services Private Limited demanding release of oxygen concentrators seized as case property in an alleged case of hoarding involving South Delhi-based businessman Navneet Kalra.

The Delhi Police seized the concentrators from restaurants where businessman Navneet Kalra has a substantial stake. (PTI file photo)

A three-judge bench headed by justice RF Nariman sought response of the Delhi police in three weeks. The petitioner firm challenged a May 27 order of the Delhi high court refusing to release oxygen concentrators worth ₹3.5 crore lying idle with the police as case property.

For Matrix, senior advocate Mukul Rohatgi submitted that the high court was wrong to assume that the seizure was part of black marketing when the government has not fixed any maximum retail price (MRP) for oxygen concentrators. He stated that the police found mischief with the products sold by the company when other products were available on similar price across e-commerce sites.

The high court, while rejecting the plea raised by Matrix, held that the oxygen concentrator, is covered within the definition of drug as per Section 3(b)(iv) of the Drugs and Cosmetics Act. It relied on a February 11, 2020 government notification which said that device includes an instrument, apparatus, used for treatment, sustaining life, etc. Later, another order was issued by the Centre on June 29, 2020 which prohibited increasing MRP of oxygen concentrators more than 10% in a year.

The high court said, “The facts show the petitioner was engaged in selling untested oxygen concentrators to people desperate for these devices and at exorbitant prices through false representations, especially, when the State and the whole country saw a unprecedented surge of Covid-19 infections and severe lack of oxygen cylinders and/or concentrators….Hence, the investigation being at initial stage, the reliefs sought for in this petition cannot be granted by this court.”

The Delhi Police seized the concentrators from restaurants where businessman Navneet Kalra has a substantial stake. The police lodged a case against Kalra and employees of Matrix and recovered 524 oxygen concentrators at the instance of the accused persons. Each device was allegedly being sold for about ₹70,000, according to the police.

The high court directed the police to put an identification mark on the concentrators and held no fault with the action of the police to seize the concentrators prior to lodging of first information report. The court said, “Even if it is assumed, there were some irregularities in its procedure to seize, it shall not vitiate the seizure. The only requirement is the court needs to be careful in scrutinising the seizure memo.”