Delhi ACB Raids after Suspect in Rs 700 Crore Medical Supply Fraud Goes Missing

The Anti-Corruption Branch (ACB) of the Delhi government has conducted multiple raids after Rajiv Rangila, a supplier and pharmaceutical trader accused of manipulating tenders in a Rs 700 crore procurement fraud case, was found missing from his home in East Delhi’s Laxmi Nagar area, sources said.

Rangila, 50, was summoned for questioning by the ACB last week in connection with the fraud case linked to the Central Procurement Agency (CPA) and the Directorate General of Health Service (DGHS). After he failed to appear despite multiple notices, ACB officials launched searches across Delhi-NCR and Uttarakhand. Sources said Rangila has been actively supplying medicines and medical equipment in Delhi and Uttarakhand for over a decade. The agency is also planning to issue a lookout circular against him.

According to investigators, Rangila is a key suspect in the case. He has been named in the FIR for allegedly creating fake companies using fictitious owners. He is accused of colluding with manufacturers to fix supply rates and kickbacks paid in cash. Some of these firms include F Med Devices, Technocrats, Raj Shree, Ashi Surgical and Pharmaceuticals, and M Sahib and Sons Pvt. Ltd. The complaint states that although others were registered as owners, the actual operator was Rajiv Rangila.

The alleged irregularities first came to light in May this year when the Vigilance Department raided the CPA offices following complaints. The CPA is the nodal agency responsible for procuring and supplying medicines, vaccines, and medical equipment to Delhi government hospitals. Sources said tender specifications and terms were allegedly drafted to favour chosen firms, and fake companies were created to cause confusion.

Rangila allegedly prepared restrictive specifications in collusion with manufacturers, after which the documents were sent to Dr Vinod Kumar Ranga, Head of Office of the CPA, who placed them before the tender committee. Ranga was the first to be arrested in the case on June 18. According to the complaint, tender committee members were allegedly coerced into approving these tailor-made specifications.

Former DGHS chief Dr Vatsala Aggarwal, arrested on June 27, allegedly gave final approval to the skewed tender conditions. Deputy Controller of Accounts Neeraj Chopra was also arrested. Officials alleged that fake companies controlled by Rangila submitted bills for supplies, and payments were released within one or two days.

As per the complaint, several tenders that have been awarded and fully paid for continue to appear as 'active' or 'under process' on the Government e-Marketplace portal. This modus operandi prevented the public and competing firms from knowing whether a tender had been finalised or who secured it. Officials noted that payments to previous suppliers had been pending for two years, but payments to Rangila's alleged firms were made promptly since October.

Officials added that Rangila's family members are being contacted to ascertain his whereabouts.