Delhi High Court Declines to Quash Proceedings Against Matrix Cellular Over Alleged COVID-19 Equipment Hoarding

The Delhi High Court has refused to quash ongoing criminal proceedings against Matrix Cellular International Services Limited. The company is accused of hoarding and selling defective COVID-19-related equipment, including oxygen concentrators, at exorbitant prices during the devastating second wave of the pandemic.

The case, Matrix Cellular International Services Limited & Ors v. State NCT of Delhi, was heard by Justice Dinesh Kumar Sharma, who emphasized the seriousness of the allegations and declined to intervene while the investigation remains incomplete.

Court Highlights Seriousness of Allegations

Justice Sharma underscored the gravity of the accusations, stating, “Still, the allegations of selling the untested oxygen concentrators to get wrongful gains, taking undue advantage of the crisis and acute shortage of oxygen supply caused by the pandemic, and compelling needy persons to part with their hard-earned money cannot be ignored. The margin of profit was very high, especially in view of the ongoing pandemic.”

The court noted that the oxygen concentrators sold by the company reportedly did not meet the World Health Organization’s (WHO) recommended standards for treating COVID-19 patients. This matter, according to the court, is still under investigation.

Raids and FIR During Second Wave of COVID-19

The case originated during the chaotic second wave of COVID-19, when police conducted raids across Delhi. These raids uncovered stockpiles of oxygen concentrators, cylinders, KN-95 masks, and other essential medical equipment, which were being hoarded and allegedly sold at inflated prices.

A First Information Report (FIR) was subsequently filed against Matrix Cellular and other alleged perpetrators under charges of cheating and negligent acts likely to spread life-threatening disease.

Matrix Cellular’s Defense

Matrix Cellular’s legal team argued that the accusations were unfounded. They claimed that the purchase of the equipment was legitimate and that the company had been designated as a Collection Centre during the pandemic to streamline the overwhelming demand for oxygen concentrators and other supplies. This role, the counsel contended, was being misconstrued as hoarding.

Court’s Position on FIR Quashing

Justice Sharma clarified that an FIR can only be quashed in exceptional cases, and the ongoing investigation necessitated the continuation of proceedings. The court noted, “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.”

The decision ensures that the investigation into the allegations against Matrix Cellular will proceed without interference, leaving room for the accused to present their defense at a later stage.

Legal Teams Representing Both Parties

Matrix Cellular was represented by Senior Advocate Mohit Mathur, along with Advocates Samudra Sarangi, Abhilasha Khanna, and Tanay Chaturvedi. On behalf of the state, Additional Standing Counsel (Criminal) Amol Sinha appeared, supported by Advocates Kshitiz Garg, Ashvini Kumar, and Chavi Lazarus.