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  
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