Corona Update: Kit Company gains 145% in sold rapid test kit

Corona Update: Kit Company gains 145% in sold rapid test kit

The Kovid-19 Rapid Test Kit imported from China, sold to the Indian Council of Medical Research (ICMR), has made very big profits.  The import cost of this kit in India is only 245 rupees, but it has been sold to ICMR for 600 rupees per kit, that is, with a fat profit of around 145 per cent.

Corona Update~

~A kit coming from China cost Rs 245 

~ICMR ordered 5 lakh kits for Rs 600. 

~The price was given, thus huge profits were made even in times of crisis

There was litigation between its distributor and importer over Kovid-19 rapid test kit imported from China and both had gone to Delhi High Court.  But this litigation has revealed the shocking fact that the kit sold to the Indian Council of Medical Research (ICMR) has made very big profits.

 What is the court order

 The import cost of this kit in India is only 245 rupees, but it has been sold to ICMR for 600 rupees per kit, that is, with a fat profit of around 145 per cent.  In the Delhi High Court, a single bench of Justice Nazmi Waziri ordered to sell it for Rs 400 per test kit, reducing its price by 33 per cent.  Even at this price, the distributor gets a profit of 61 percent.  The High Court has told it enough.

In fact, Rare Metabolics, the sole distributor of this rapid antibody test kit, had filed a petition against the importer Matrix Labs.  Matrix Labs imported this kit from Wondafo Biotech, China.

 Corona Update

 The dispute was over whether the importer was not sending the remaining 2.24 lakh kits to ICMR.  The importer Matrix Labs had imported 5 lakh such kits, but it says that out of Rs 21 crore (20 crore plus GST) it has been paid only Rs 12.75 crore.  According to the agreement, the importer had to pay the remaining Rs 8.25 crore first.  But Rare Metabolics filed a petition in the Delhi High Court requesting that the remaining 2.24 lakh kits be provided to it, so that it could complete its agreement to supply to ICMR.

The court ordered to reduce the rate of this kit.  The petitioner said that according to the tripartite agreement, no other company in India can distribute it.  The company said that it has paid Rs 12.75 crore, which includes the freight charge of 5 lakh kits.  Rare Metabolics said that she would pay the entire money as soon as the rest of the goods are received.

Cheap Chinese Kits!

 In fact, ICMR has also withheld funds for this.  2.76 lakh kits have been supplied to ICMR, but according to the petitioner, it has not received its money yet.  Rapid test is not being done because the test kit does not meet the ICMR standard.  On the other hand, the manufacturer company Vondafo claims that there is no flaw in its kit.