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Delhi High Court has refused to release Oxygen Concentrators seized from the Office premises of Matrix Cellular at Mehrauli and collection centre at Lodhi Colony.

Justice Yogesh Khanna, while dismissing the petition, made following observations;

1. The seized items were found under suspicious circumstances where individuals were in alleged violation of COVID 19 lockdown measures and therefore police was authorised to seize Oxygen Concentrators lying at the spot.
2. Registration of FIR is not mandatory for search and seizure under Section 102 CrPC.
3. Conjoint reading of Section 157(1) and Section 2(h) CrPC suggest that, a police officer is empowered to investigate upon information received or otherwise, if he suspects the commission of a crime that he is empowered to investigate under Section 156 CrPC, and since the investigation includes collection of evidence hence it authorizes the IO to seize any property for the purpose of collection of evidence.
4. Even if it is assumed that there were some irregularities in the procedure to seize, it shall not vitiate the seizure. [Reliance placed on Pooran Mal v. Director of Inspection, (1974) 1 SCC 345, State of Maharashtra v. Natwarlal Damodardas, (1980) 4 SCC 669]
5. The act of petitioner was in violation of OM dated 29.06.2020 which had directed the petitioners and others like him, to not increase prices of oxygen concentrators by more than 10% of the maximum retail price in a year of the Drugs Pricing Control Order (DPCO), 2013.
6. Restricting the orders of the Division Bench in Venkateshwar Hospital and Bram Health Care Private Limited, only to cylinders and not concentrators, would be giving a too narrow interpretation to such order.
7. A combined reading of the FIR, invoices and receipts, along with the fact that the seized oxygen concentrators were allegedly sold at huge profit margins prove contravention of settled rules and executive orders.
8. Relief sought for release of oxygen concentrators was in conflict with the orders passed in Venkateshwar Hospital and Bram Health Care Private Limited, wherein it was directed that whenever any drugs etc. used in treatment of Covid 19 are seized by the authorities or Delhi Police, they shall, without any delay inform the District Magistrate, who shall take the necessary steps to ascertain genuineness of the drugs etc. and pass orders for release of the same before the items seized are rendered unusable; the oxygen concentrators being a lifesaving machine, is covered within the definition of Drug per Section 3(b)(iv) of the Drugs and Cosmetics Act and as per notification dated 11.02.2021 all devises meant for diagnosis, prevention, monitoring, treatment or alleviation of any disease are covered under the definition of Drugs. In light of the aforesaid, there appears to be no illegality in the act of respondent especially when the State was reeling in acute shortage of drugs, cylinders, concentrators and attendants of patients were running pillar to post, ready to part with their life savings for its purchase.

The said writ petition was moved by the petitioner to seek release of the Oxygen Concentrators seized by the Delhi Police while patrolling around Lodhi Colony, from the restaurant Nege Ju in the Central Market.

32 boxes of Oxygen Concentrators, one box of thermal scanner and KN-95 Masks were recovered.

FIR under Sections 3/7 of the Essential Commodities Act, Section 3 of the Epidemic Diseases Act and Section 420/188/ 120B/34 IPC was registered at PS Lodhi Colony.

Four accused persons were also arrested therein.

This development comes in right before the Bail Application of Navneet Kalra, listed before the District Court tomorrow; May 28^th.

Contentions raised by Kalra in earlier hearings, on DPCO order not being an order under Section 3, Essential Commodities Act and hence not being punishable under Section 7, seems displaced by the present judgment.

Case Title: Matrix Cellular v. State (NCT of Delhi) | WP (Crl.) 975 of 2021