Were COVID-19 rapid test kits imported from China overpriced? Fresh row erupts

The SARS-CoV-2 rapid test kits imported from China, which has drawn flak for being faulty and ineffective, has waded into another controversy.

A legal dispute between an importer and distributor has put the spotlight on an alleged overpricing issue.

The opposition has latched on to the issue, with Congress leaders expressing concern.

India procured five lakh rapid antibody test kits from two Chinese firms and distributed it to several states battling the COVID-19 outbreak.

India's apex medical research body Indian Council of Medical Research (ICMR) had on Monday directed states to stop using the rapid antibody test kits till it examines its quality in the wake of complaints that they are not fully effective.

According to the details provided in the Delhi High Court, the SARS-CoV-2 Antibody test kits procured from China, whose delivered cost was Rs 245 per test, were sold to the ICMR for Rs 600 per test, triggering a fresh row.

The test kits were imported by the Matrix Labs.

The issue came up before the Delhi HC, which issued a direction to three private companies, which had entered into an agreement to import 10 lakh test kits from China and distribute them at a cost of Rs 600 each, the rate approved by the Indian Council of Medical Research (ICMR). The court then directed that the kits/tests should be sold at a price not beyond Rs 400 each.

The Centre, through ICMR, had ordered 500,000 rapid antibody kits from Chinese firm Wondfo on March 27.

Matrix Labs, the sole importer of SARS-Cov-2 antibody kits made by Wondfo, signed an agreement with another company Rare Metabolics for distribution of the kits in India.

Rare Metabolics appointed Aark Pharmaceuticals as the distributors of these kits in India.

ICMR placed an order of 500,000 kits with Aark Pharmaceuticals at a price of Rs 600 plus GST.

The Business Standard reported that Matrix Labs sold the kits to Rare Metabolics at a rate of Rs 400 per kit. Aark Pharmaceuticals supplied them to ICMR at a rate of Rs 600 per unit.

The details came to light as Rare Metabolics and Aark moved the court seeking release of 7.24 lakh COVID-19 test kits from Matrix, which was seeking full payment upfront before delivering them.

The Congress has demanded that the government should make public details of all purchases made in the last one month to fight COVID-19, alleging that huge profiteering was being made at this time of crisis.

"When the entire country is fighting against the COVID-19 disaster, some people are still profiteering. One detests and feels ashamed of such a corrupt mindset. We demand from the prime minister strict action against these profiteers. The country will never pardon them," Congress leader Rahul Gandhi said in a tweet.

Congress chief spokesperson Randeep Surjewala also said it was "shameful and inhuman" that people were supplying test kits bought for Rs 225 at Rs 600 to the state exchequer.

In the rapid antibody tests, the blood samples of suspected patients are taken, and the results are delivered in 15-30 minutes.

India has been facing severe shortage of testing kits.