Oxygen concentrators case: Court reserves order in anticipatory bail plea by ‘Khan Chacha’ owner Navneet Kalra

A Delhi Court on Wednesday reserved its order in the anticipatory bail plea filed by businessman Navneet Kalra, who is apprehending arrest in the oxygen concentrator hoarding and black marketing case.

After hearing the parties at length, Additional Sessions Judge at the Saket Courts Sandeep Garg adjourned the matter till 10 AM tomorrow, when the order will be pronounced, Bar & Bench reported.

Appearing for Kalra, Senior Advocate Vikas Pahwa argued that there was no complainant in the case, and that there was a "campaign" against his client. He added that days before the FIR was registered, Kalra had made a complaint to the police that he was being framed.

Pahwa said that the oxygen concentrators recovered from Kalra's ‘Khan Chacha’ restaurant were authenticated and properly imported.

He submitted, "All transactions are through banking channels...we are helping people by importing these goods. Oxygen concentrators are not cosmetics...it is used when someone is medically unfit..Conducting business in life saving drugs is not an offence in the eyes of law. When I create an invoice, I inform the Government of India. It is not black marketing."

On the allegations that the concentrators were being sold at an exorbitant price, Pahwa said that the government had not fixed a ceiling price for the machines.

He further stated that there is no specific order declaring oxygen concentrators or masks as essential commodities.

He went on to argue, "All plants are charging money from Delhi government for oxygen... government is charging for vaccine. It is life saving vaccine. Why is government charging in the ratio Rs 250-1200. Mr Adar Poonawalla says even if he sells for 250, he makes profit.. why is Crime Branch sitting idle now?"

Pahwa also questioned whether arrest was imperative in the case, at a time when the High Powered Committee appointed by the Delhi High Court was recommending decongestion of prisons amid the COVID-19 pandemic.

“They can't rely on social media to arrest me,” Pahwa further submitted.

During the post-lunch session, Additional Public Prosecutor Atul Srivastava submitted that the Crime Branch of Delhi Police had not shared any information related to the case with the media and that Kalra was trying to taint the perception.

Srivastava further alleged that Kalra was offering oxygen concentrators worth Rs. 28,000 at a price of Rs. 70,000.

He submitted that the investigation was at a very early stage and Kalra's custodial interrogation was imperative to further unearth the relationship with other parties.

"This type of white collar crime.. should not be given anticipatory or regular bail.. in this also, crores of rupees they have already made..On the brochure, through which they started inducement.. "premium", "German", "sufficient for two persons"..it is not sufficient for one also. From inception your intention was to cheat," Srivastava said.

Last week, police reportedly recovered oxygen concentrators from "Khan Chacha" and other restaurants owned by Navneet Kalra. The police claimed that the imported concentrators were being sold in the black market amid the COVID-19 crisis.

In a related development, a Delhi Court on Wednesday granted bail to Matrix Cellular CEO Gaurav Khanna, Vice President Gaurav Suri and two others in a case registered against them after their entire stock of oxygen concentrator was seized by Delhi Police from locations in Lodhi Colony and Mehrauli last week.

The order was passed by Arun Kumar Garg, Chief Metropolitan Magistrate, Saket Court.

All five accused persons were arrested by Delhi Police last week soon after the raids.

As per the prosecution case, the accused had "hatched a conspiracy" to wrongfully make money by "inducing" the public and selling imported oxygen concentrators at an "exorbitant rate" amid a raging pandemic.

Seeking bail in the case, counsel for the five arrested persons had argued that there was no "black marketing" and in the absence of any government order capping the sale price, the MRP was being fixed after considering the various costs incurred by Matrix Cellular while importing and selling the equipment.

The court, in its 20-page order, stated that firstly, even if all the averments in the FIR were "presumed to be gospel truth", no prima facie case under section 420 IPC (cheating) was made out, at least from the contents of the FIR.

The court also observed, "Despite repeated directions by Hon’ble High Court of Delhi, the govt. is not coming forward to cap the price of essential medical devices. Nor any regulation has been made by the govt. for sale of the same by the importers to the govt. for its equitable distribution to the needy persons for reasons best known to the Govt."

Further, no evidence seemed to have been collected by the Investigating Officer with respect to the violations such as black-marketing and hoarding till date, the court stated.

While reserving the order in the bail petitions, the court had pulled up the State for the arrest of private persons who were selling imported oxygen concentrators at an "exorbitant rate" to consumers when it had itself not regulated the sale price.