Delhi medical procurement fraud: Probe focuses on supplier accused of rigging tenders
As investigations deepen into the alleged Rs 700-crore fraud at the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS) in Delhi, a supplier accused of manipulating tenders and siphoning public funds is under scrutiny, sources familiar with the probe have indicated.
Investigators describe the individual as a broker who is believed to have created multiple shell companies to benefit a select group of manufacturers. He is accused of colluding with manufacturers to fix supply rates and arrange cash kickbacks, according to sources.
A senior officer said, “The FIR mentions the name. His role is being probed and he is on the radar. If required, he will be called for questioning and may be arrested.”
The case stems from a complaint filed by the Department of Vigilance with the Anti-Corruption Branch (ACB) of the Delhi Police, which was registered as an FIR on June 2. Alleged irregularities first came to light in May when the Vigilance Department conducted raids at CPA offices following complaints about procurement discrepancies.
The complaint names several firms allegedly used as fronts and states that the broker was the real operator behind these entities. It alleges that tender specifications were drafted to favour pre-decided firms, with the broker drafting restrictive specifications in collusion with manufacturer contacts. These documents were then reportedly routed to Dr Vinod Kumar Ranga, Head of Office of CPA, who presented them to the tender committee.
Tender committees were allegedly coerced into approving these tailor-made specifications. Former DGHS Dr Vatsala Aggarwal, arrested in the case, allegedly gave final approval to the skewed tender terms.
The broker is said to have ensured that front firms submitted bids. Criteria such as turnover, experience, and performance were set at exorbitant levels to discourage genuine competitors, yet the shell firms were allowed to qualify, the complaint states.
Technical evaluation sheets were reportedly prepared by the broker and handed to Dr Ranga for fast approval, while financial bids were opened secretly on the same day. Award approvals and purchase orders were issued manually and outside the e-procurement or Government e-Marketplace (GeM) workflows—often within hours of bid opening.
The FIR alleges deliberate manipulation of online tender statuses to conceal completed awards. Long-closed procurements, for which full payments were allegedly released, reportedly remained listed as “Active” or “Under Process” on public portals, preventing scrutiny. Payments to existing suppliers allegedly stalled for up to two years, while orders tied to the broker received payment within one or two days. The complaint contends that tenders worth several hundred crores may have been awarded under this arrangement.
The ACB has confirmed the registration of an FIR and said preliminary inquiries are underway. Investigators will examine tender files, procurement portals, payment records, and corporate structures of the named firms to establish links alleged in the complaint.
