Economic Offences Wing Takes Action After Four-Year Delay in Oxygen Plant Payment Dispute
The Economic Offences Wing (EOW) of the Delhi Police has finally registered a case regarding alleged non-payment of dues worth Rs 13 crore linked to the installation of oxygen generation plants in Ministry of Defence hospitals across India. This development comes more than four years after Delhi-based Katyayani Enterprises first raised complaints about outstanding payments for work completed during the critical Covid-19 pandemic period.
Contract Details and Supply Chain Complexities
According to the complaint filed by Katyayani Enterprises, a company engaged in distribution, marketing and sale of medical equipment, the chain of contracts began with the Defence Ministry awarding work to Viskho Corporation, a medical equipment supplier based in Mayur Vihar Phase III of East Delhi. Viskho Corporation then subcontracted the oxygen plant installation project to Mumbai-based Medion Healthcare.
In 2021, Katyayani Enterprises entered into an agreement with Medion Healthcare to set up and supply 23 static oxygen generation plants at various MoD hospitals nationwide. The total contract value exceeded Rs 19 crore, as documented in the FIR registered on January 9, 2026.
Payment Discrepancies and Allegations
After completing the installation work, Katyayani Enterprises raised a tax invoice amounting to Rs 19,07,40,050, which was supposed to be paid by Viskho Corporation. However, the company claims it received only Rs 5,58,81,629, leaving a substantial balance of approximately Rs 13 crore unpaid.
In their complaint, Katyayani Enterprises stated they repeatedly reminded Viskho Corporation about the pending payment, but the company allegedly delayed settlement by claiming that the Defence Ministry had not cleared the bills. The complaint further alleges that Viskho Corporation concocted false stories about malfunctions at certain oxygen plants to justify the payment delay.
Contradictory Claims and Dishonoured Cheque
When Sangeeta, the proprietor of Katyayani Enterprises, directly inquired with the Defence Ministry about the payment status, she was reportedly informed that the ministry had already made full payment to Viskho Corporation and no amounts were pending. This contradictory information heightened the dispute.
The situation escalated in April 2022 when Katyayani Enterprises, unable to pay its own supplier Medion Healthcare, approached Viskho Corporation again. At that time, Viskho allegedly issued a post-dated cheque for the pending amount, which was subsequently dishonoured with the remark "Exceeds Arrangements" when presented for payment on April 16, 2022.
Defence from Accused Party
Pankaj Prasad, proprietor of Viskho Corporation who has been named in the FIR, presented a different version of events. He claimed that his company had cleared all payments due to Katyayani Enterprises by September 2023. According to Prasad, Viskho Corporation received the project directly from the Defence Ministry in 2022 and initially contracted Medion Healthcare for the installation work.
Prasad alleged that Medion Healthcare introduced Katyayani Enterprises into the contract midway through the project, with Katyayani not being mentioned in the initial agreement between Viskho and Medion. He further claimed that Katyayani delayed the project execution, leading to liquidated damages, yet Viskho still made all required payments. Prasad characterized the EOW case as "false" and unjustified.
The registration of this case by the Economic Offences Wing highlights the complex contractual relationships and payment disputes that emerged during the emergency procurement and installation of medical infrastructure during the Covid-19 pandemic. The investigation will now examine the conflicting claims and documentation to determine the factual circumstances surrounding this substantial financial dispute.
