Lawstreet Journal

Delhi HC: Prices To Be Capped For COVID-19 Test Kits

Lawstreet Journal 28 Apr 2020 8:07pm

Image courtesy: Lawstreet Journal Judiciary Delhi HC: Prices To Be Capped For COVID-19 Test Kits

The Delhi High Court has mandated a Medical Equipment Importer to restrict the price of each Coronavirus test kit to ₹400 per kit inclusive of GST, instead of the price at which it was ordered by the Indian Council of Medical Research (ICMR) which was at ₹600 per kit.

In the last weeks of March, ICMR had placed an order for Five lakhs WONDFO SARS CoV-2 Antibody test kits from China at the rate aforementioned,  equating the total price for the order to ₹30 Crores whereas the cost calculated for each test kit totalled ₹245 with the sum for 5 lakh test kits equalling at ₹12.25 crores.

The HC took note of the fact that from the ₹30 Crore which was to be paid by ICMR for the requested 5 lakhs test kits, ₹18.75 crore was to be shared by the distributors - Matrix Labs, Rare Metabolics Life Sciences and Aark Pharmaceuticals.

"The respondent (Matrix Labs) is to supply these goods to petitioner no.2 (Aark Pharmaceuticals) for ₹.20 crores plus 5% GST = ₹.21 crores, at an apparent 45% profit of ₹.7.75 crores," the high court said, while further remarking -"Petitioner no. 2 is to receive an amount of ₹. 30 crores plus GST from the ICMR, for a similar evident profit of ₹.9 crores despite no value addition to the imported medical material,"

The first order lot contained 2.76 lakh test kits and they were delivered to ICMR on 17th April 2020, the invoice for which has been raised but the payment is awaited.

While directing… Continue Reading...

Tagged: Test Kits   Corona Updates  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0

C2RMTo Know More

Something Awesome Is In The Work









Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail