Former Delhi Health Director Arrested in Rs 500 Crore Medical Procurement Scam
The Anti-Corruption Branch (ACB) of the Delhi Government has arrested Dr. Vatsala Aggarwal, former Director General of Health Services (DGHS), in connection with an alleged multi-crore procurement scam involving medicines, surgical items, and medical equipment, officials said on Saturday.
Dr. Aggarwal was arrested on June 27, 2026, days after the ACB apprehended Dr. Vijay Kumar Ranga in the same case. Dr. Ranga has been remanded to four days' police custody by a Delhi court.
According to the ACB, the case involves large-scale financial irregularities in procurements worth several hundred crore rupees carried out by the Central Procurement Agency (CPA), which functions under the DGHS. The investigation was initiated after the Directorate of Vigilance flagged suspicious transactions and possible procedural violations.
Investigators allege that procurements of portable X-ray machines, bed sheets, linen, C-arm radiological equipment, anaesthesia workstations, oral rehydration solution (ORS), surgical consumables, and medicines were made at highly inflated rates through manipulated tender processes.
The ACB further alleged that tailor-made specifications were framed to favour selected suppliers, excluding genuine bidders, resulting in misuse of public funds worth hundreds of crores.
A case was registered on June 2 under relevant provisions of the Prevention of Corruption Act and criminal conspiracy sections of the Bharatiya Nyaya Sanhita. Officials said procurement records, tender files, and related documents are being scrutinised.
Dr. Aggarwal was removed from the DGHS post on May 21 and placed under 'awaiting posting' before being transferred to Guru Teg Bahadur Hospital. She was subsequently suspended at the direction of Delhi Lieutenant Governor Taranjit Singh Sandhu to facilitate disciplinary proceedings.
The Delhi Government has also suspended five pharmacists and two CPA officials after an internal inquiry reportedly found serious irregularities in procurement, storage, and management of medicines at various agency stores.
The ACB said further investigation is underway to identify the role of other officials and private suppliers in the alleged scam.
