Delhi High Court judgement in Rare Metabolics v Matrix Labs has revealed scandalous details about the import of 5 lac Wondfo antibody test kits, ordered by @ICMRDELHI at Rs 30cr through intermediaries who were taking a cut of 18.75 cr @CDSCO_INDIA_INF @MoHFW_INDIA @NITIAayog 1/n

Breakdown of pricing for 5 lac test kits ordered by ICMR:

Matrix import @ Rs 245 a piece = Rs 12 cr 25 lac

Matrix sale to Rare Metabolics with 7.75 cr markup = Rs. 21 cr

Rare Metabolic sale to @ICMR @ Rs 600 a piece (9cr markup)= Rs. 30 cr 2/n

Matrix is also due to provide Govt of Tamil Nadu 50k test kits through a dealer, Shan Biotech & Diagnostics and Diagnostics, at the "ICMR approved rate of @Rs.600/- per test"

Due to the legal dispute b/w Rare Metabolics & Matrix, dirty details about costs have poured out 3/n

DHC stepped in to cap price of test kits at Rs 400 inclusive of GST, noting that:

"The Court is of the view that a profit mark-up of Rs. 155/- i.e 61% on the landed cost price of Rs. 245/- is much on the higher side and in any case more than sufficient for the seller,..." 4/n

"...for the kits/tests to be made available in India for urgent extensive tests through the country, especially in these
present extraordinary circumstances of the worldwide pandemic." 5/n

However, the Rs. 400 cap may not apply to current order of 5 lac kits

Reference para 7 of judgement where Court has instructed that balance amount due to Matrix (as per the old agreed rate) should be cleared by Rare Metabolic 6/n

The Court, apparently unaware of the quality concerns relating to these test kits & therefore ICMR's reluctance to pay Rare Metabolics, directed that, from the new consignment

- 2.24 lac kits (pending) shall be delivered to ICMR
- pending kits also be supplied to Tamil Nadu 7/n

It's hard to imagine that @ICMRDELHI was unaware of the profiteering by intermediaries. It would have known Wondfo price of $3/kit, prices of kits from other manufacturers & also prices at which they are being procured

Chhattisgarh has procured at ~Rs 400 @TS_SinghDeo n/n

@ICMRDELHI placed its order with mystery Petitioner 2 (unnamed in the order)

An agreement was signed in which Rare Metabolics appointed petitioner no.2 as its distributor for COVID 19 Rapid Test Kits & other related material to which the respondent (Matrix) also was a signatory