Modest backgrounds, massive contracts: Delhi medical fraud probe reveals startling links
The Anti-Corruption Branch (ACB) of Delhi on Tuesday disclosed in a city court startling details about the alleged Rs 700 crore medical supplies fraud case, including the modest backgrounds of two company directors linked to the scam. One director is said to have worked as a “servant” for a doctor, while another owned only a 20-square-metre plot. Despite these humble circumstances, firms associated with them handled contracts worth hundreds of crores, according to the ACB.
Chief Public Prosecutor Pramod Kumar, representing the ACB, told the court: “A director of a company was a servant to some doctor. Transaction has been of more than 200 crores. Another director had only a 20 square metre plot.” The ACB alleged that procurement norms were manipulated to favor selected companies, with contracts awarded without proper bidding on the Government E-marketplace (GeM) platform.
The case pertains to alleged widespread irregularities in the procurement of medicines, surgical items, and hospital equipment for Delhi government hospitals. The Central Procurement Agency (CPA), the nodal agency responsible for procuring and supplying medical supplies, is at the center of the probe. The ACB claimed that the accused bypassed GeM procedures and issued individual agreements directly, with all hospitals making purchases through the CPA.
Three accused have been arrested so far: former Director General of Health Services (DGHS) Dr Vatsala Aggarwal, former CPA Deputy Controller of Accounts Neeraj Chopra, and Dr Vinod Kumar Ranga, former Head of Office CPA. The case originated from a Vigilance Department complaint that was registered as an FIR on June 2. The ACB submitted that decisions were taken collectively, with Dr Aggarwal having the final say. It also noted that the tender bids had been pending since 2024.
During the hearing, Dr Aggarwal, appearing visibly distressed, told the judge: “In all those files which came to me, I just signed them. All were L1 drawn with proper justifications. I’ve got 30 more departments besides CPA. After the file is signed by me, it is sent back. In no way, I have…”. The judge remanded all three accused to judicial custody until July 20, citing the seriousness of the allegations and the need for further investigation.
The ACB also informed the court that a key accused, Rajiv Rangila, a medicine supplier and pharmaceutical trader, remains absconding. Raids at eight locations, including a small shop in Lakshmi Nagar, were conducted on July 2, but Rangila’s house was found locked. The ACB stated that he owns multiple properties, including a farmhouse in Karnal and a property in Rishikesh, and has multiple cases against him. The court issued a non-bailable warrant against him.
The investigation is ongoing, with the ACB examining electronic evidence, witnesses, and the money trail. The agency also said that the role of other public servants, private individuals, and beneficiary firms is under scrutiny.
