Delhi medical procurement scam: ACB arrests former DGHS Dr Vatsala Aggarwal in CPA case

Delhi’s Anti-Corruption Branch has arrested former Director General of Health Services Dr Vatsala Aggarwal over an alleged medical procurement scam. Investigators allege inflated rates and manipulated tenders for medicines, surgical consumables, and equipment purchased through the Central Procurement Agency. The case followed vigilance alerts citing suspected procedural violations and misuse of public funds.

The Delhi government’s Anti-Corruption Branch arrested former Director General of Health Services Dr Vatsala Aggarwal on Saturday. Officials linked the arrest to an alleged procurement scam involving medicines and medical supplies. The case also covers surgical items and medical equipment. Investigators said the suspected irregularities involved purchases worth several hundred crores of rupees.

According to officials, the probe centres on the Central Procurement Agency, which functioned under the DGHS. The Anti-Corruption Branch said it suspected large financial violations in multiple purchase decisions. The inquiry began after the Directorate of Vigilance flagged transactions as suspicious. Possible breaches of procedure were also reported during the review.

Delhi Anti-Corruption Branch arrest in DGHS procurement scam

The agency alleged that tender processes were manipulated to favour selected suppliers. Investigators said specifications were drafted to match chosen vendors. This, the agency claimed, kept genuine bidders out of competition. Officials alleged this led to misuse of public funds. The suspected loss was described as running into hundreds of crores.

Investigators alleged inflated pricing in several procurement categories. Items listed included portable X-ray machines and C-arm radiological equipment. The alleged purchases also covered anaesthesia workstations and surgical consumables. Bed sheets and linen were also named. The Anti-Corruption Branch also cited oral rehydration solution ORS and medicines.

Delhi Anti-Corruption Branch probe under Prevention of Corruption Act in procurement scam

Based on a complaint, the agency registered a case on June 2. Officials said the case invoked relevant provisions of the Prevention of Corruption Act. It also included criminal conspiracy sections of the Bharatiya Nyaya Sanhita. Procurement records were being checked. Tender files and connected documents were also under scrutiny.

Aggarwal’s arrest came a few days after another arrest in the same matter. The Anti-Corruption Branch had earlier apprehended Dr Vijay Kumar Ranga. Officials said Ranga was later sent to four days of police custody. A Delhi court ordered the remand. The agency said it is examining links across the procurement chain.

Delhi Anti-Corruption Branch action and suspensions linked to procurement scam

Officials said Aggarwal was removed from the DGHS post on May 21. Aggarwal was placed under awaiting posting before another transfer. Aggarwal was then moved to Guru Teg Bahadur Hospital. Officials said Delhi Lieutenant Governor Taranjit Singh Sandhu later ordered Aggarwal’s suspension. The stated purpose was to enable disciplinary proceedings.

Earlier on Saturday, the Delhi government also suspended staff tied to procurement work. Officials said five pharmacists and two Central Procurement Agency officials were suspended. The action followed an internal inquiry, according to officials. The inquiry reportedly found serious issues in procurement and storage. It also raised concerns about medicine management at stores.

Chief Minister Rekha Gupta said her government follows a zero-tolerance policy towards corruption and administrative negligence, and warned of strict action against any official found guilty of wrongdoing. Officials also said the chief minister had earlier approved a corruption probe. The sanction covered Aggarwal and other Health Department officials. It was granted under Section 17A of the Prevention of Corruption Act.

The Anti-Corruption Branch said the investigation remained open and ongoing. Officials said the agency was working to identify other involved individuals. The stated focus included the role of other officials and private suppliers. Investigators said they would continue examining records and tender decisions. The case continues to be handled under the registered legal provisions.

With inputs from PTI