No interim protection from arrest to Kalra till May 18 in oxygen black marketing case: Delhi HC

A sessions court had on Thursday dismissed Kalra's anticipatory bail plea

The Delhi High Court on Friday refused to grant any interim protection from arrest to high-profile businessman Navneet Kalra in connection with alleged black marketing of oxygen concentrators.

Kalra, owner of the famous 'Khan Chacha' restaurant at the upscale Khan Market, approached the High Court after the dismissal of anticipatory bail by a Delhi court on Thursday.

"I am persuaded by the reasons given by the trial court which is a valid ground for me not to grant any interim protection now," Justice Subramonium Prasad said.

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The court posted the matter for further hearing on May 18.

The sessions court had denied relief noting the possibility of the accused tampering with the evidence or intimidating the prosecution witnesses. It said custodial interrogation was required to unearth the entire conspiracy.

Senior advocates Abhishek M Singhvi and Vikas Pahwa, representing Kalra, contended the High Court should grant interim protection. Police should not take any coercive action in the backdrop of the High Court hearing, they said.

Additional Solicitor General S V Raju contended that he had information in connection with shell companies, which he was required to place before the court. He also said heavens will not fall if the matter is taken up on May 18.

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Singhvi said the contention was an attempt to embarrass the court. Kalra’s arrest was not needed as under the Drug Price Control Order (DPCO) 2013, there was a provision to adjust the overcharged amount or refund it. No price was fixed for imported oxygen concentrators, he claimed.

However, the court pointed out that many concentrators were seized from Kalra’s properties and price stickers, including blank ones, were found at the site. The court told Kalra’s counsel if it would be a violation of the DPCO 2013, is the main question.

The High Court also said that as per the trial court, Kalra was selling poor quality concentrators at an exorbitant price.

During a raid, 524 oxygen concentrators were recovered from three restaurants owned by Kalra -- Khan Chacha, Nega Ju and Town Hall. After lodging of an FIR on May 5, co-accused Gaurav Suri, Satish Sethi, Hitesh Kumar and Vikrant were arrested in the case related to selling of poor quality China-made oxygen concentrators at exorbitant prices with fraudulent representation that those were of premium class, manufactured with German collaboration.

During the previous day's hearing, the high court had asked Kalra how he could hold on the concentrators or even sell them when he did not have a valid license to manufacture, store, import or sell the same.

While the sessions court denied him anticipatory bail, a magisterial court on May 13 granted bail to an employee of upscale restaurant 'Town Hall', owned by Kalra, in connection with the case.

Four employees of Matrix Cellular company, including its CEO and vice president, who were also arrested in the case are also out on bail.

During a recent raid, 524 oxygen concentrators were recovered from three restaurants owned by Kalra -- Khan Chacha, Nega Ju and Town Hall -- and he is suspected to have left Delhi along with his family. The concentrators are crucial medical equipment used for Covid-19 patients.

Kalra had bought the concentrators from Matrix Cellular which had imported them.

On May 5, a case was registered against Kalra under Section 420 (cheating), 188 (disobedience to order duly promulgated by public servant), 120-B (criminal conspiracy) and 34 (common intention) of the Indian Penal Code.

The FIR, also registered under Essential Commodities Act and Epidemic Diseases Act, for black marketing of oxygen cylinders prescribes maximum punishment for seven years.