Delhi HC Dismisses Petition Seeking Quashing of FIR Alleging Sale of Defective Oxygen Concentrators During COVID-19 Pandemic

An FIR was registered against Matrix Cellular International Services Limited (Petitioner) under Sections 420, 269, 188, 120B, and 34 of the IPC. The allegations related to the alleged sale of defective and sub-standard oxygen concentrators at exorbitant prices during the COVID-19 pandemic.

A Single Bench of Justice Dinesh Kumar Sharma stated, “The factum of oxygen concentrators not meeting the parameters as set by the WHO and Government and whether the petitioner had the knowledge that the oxygen concentrators are sub-standard ones and did not meet the requirements is still under investigation. The investigation is still pending, and therefore, it would not be apposite to quash the proceedings at this stage.”

Advocate Samudra Sarangi appeared for the Petitioners, while ASC Amol Sinha represented the Respondent.

The FIR was registered following a raid conducted where 32 boxes containing oxygen concentrators and other medical equipment were seized. Subsequent investigations led to the recovery of 387 oxygen concentrators, 112 boxes of KN-95 masks, and 95 oximeters from the Petitioner’s premises and other locations.

The prosecution alleged that the Petitioner sold oxygen concentrators at inflated prices, earning profits of Rs. 40,000-Rs. 42,000 per unit, despite the equipment not meeting the required standards for COVID-19 treatment. Laboratory tests conducted at AIIMS and findings from the Ministry of Health and Family Welfare indicated that the concentrators provided oxygen purity levels between 32.7% and 38.2%, far below the WHO’s recommended range of 82%-96%.

The High Court stated that quashing the FIR at this stage was not appropriate while the investigation was still pending. The Bench stated that the Supreme Court has time and again ruled that “alleged non-compliance with regulatory standards and potential knowledge of such non-compliance constitute issues that are subject to investigation and determination at trial.”

“In the present case, the petitioner faces allegations of selling defective/un-tested/sub-standard oxygen concentrators at inflated prices and allegedly providing products that were not in compliance with essential quality standards. During the COVID-19 pandemic, access to reliable and effective oxygen concentrators was critical,” the Court remarked.

Consequently, the Court held, “After taking into consideration the facts of the case, documents on record and submissions of the parties, this court is of the opinion that it is not appropriate to quash the proceedings at the stage while investigation is still pending. 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.”

Accordingly, the High Court dismissed the Petition.

Cause Title: Matrix Cellular International Services Limited & Ors. v. State NCT of Delhi (Neutral Citation: 2024:DHC:8983)

Appearance:

Petitioners: Advocates Samudra Sarangi, Abhilasha Khanna and Tanay Chaturvedi

Respondent: ASC Amol Sinha; Advocates Kshitiz Garg, Ashvini Kumar and Chavi Lazarus

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