Massive 145% Profiteering in Sale of COVID-19 Test Kits Exposed

The Indian distributor, Real Metabolics had sold the COVID-19 test kits to the govt at an inflated price which has now been disclosed in Delhi HC.

New Delhi| Amid an unprecedented crisis face by India and the world due to the novel coronavirus pandemic, a legal conflict between an importer and a distributor has revealed massive profiteering in the delivery of COVID-19 test kits to the ICMR.

SARS CoV-2 Antibody test kits procured from China whose delivered cost was Rs 245/ test, were sold to the Indian Council of Medical Research for Rs 600/ test, a huge profit margin of 145%, as per the details provided in Delhi High Court,

• The $3 per test SARS CoV-2 Antibody test kits are being imported from China’s Wondfo
• Its landed price, including air freight (Rs 20), to importer Matrix Labs, is Rs 245 per test
• ICMR placed an order to buy 5 lakh kits on March 27, 28 @Rs 600 (plus GST) per test
• Importer Matrix Labs sells to distributor Rare Metabolics Life Sciences at Rs 400 per test
• Rare Metabolics contracted to ICMR at the government-approved rate of @Rs 600 (plus GST)
• 2.76 lakh have been delivered to ICMR; remaining 2.24 lakh tests are about to land
• Rare Metabolics intends to sell 1 million kits; an order was placed with Matrix for 5 lakh kits
• Matrix Labs has an order to supply 50,000 kits to Tamil Nadu through dealer Shan Biotech and Diagnostics at Rs 600 per test
• Of this, 24,000 have already been supplied; 26,000 more are yet to be delivered

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The profiteering racket exposed when Rare Metabolics Life Sciences Pvt Ltd and Aark Pharmaceuticals, distributors of Wondfo Biotech’s SARS CoV-2 Antibody kits shipped by Matrix Labs requested the Delhi High Court to get their contract enforced.

(Inputs from Agencies)