New Delhi: The Anti-Corruption Branch of the Delhi government achieved a major breakthrough on Saturday by arresting former Director General of Health Services Dr Vatsala Aggarwal. Her arrest marks the second high-profile apprehension in connection with a suspected 600-crore INR health procurement scam involving extensive irregularities in the purchase of medical supplies, linen, and advanced healthcare machinery for Delhi government hospitals.
The enforcement action comes on the heels of the arrest of Dr Vijay Kumar Ranga, who was recently remanded to four days of police custody by a Delhi court. Investigative teams revealed that the massive financial probe is centered around the Central Procurement Agency, a specialized wing operating directly under the DGHS that handles large-scale medical tenders. The ACB initiated its formal inquiry following a detailed complaint from the Directorate of Vigilance, which flagged systemic procedural violations and highly suspicious bidding practices designed to bypass state regulations.
According to the First Information Report, public funds were systematically siphoned off through deliberately inflated invoices. The investigation revealed that purchase bills were artificially spiked by 230 per cent for portable X-ray machines, 200 per cent for hospital bed sheets, 340 per cent for C-arm radiological equipment, and an astonishing 500 per cent for Oral Rehydration Solution packets. The state agency alleges that tender parameters for anesthesia workstations, surgical consumables, and essential medicines were meticulously manipulated with tailor-made technical specifications to unfairly benefit pre-selected suppliers while shutting out legitimate corporate bidders.
The FIR specifically names former CPA Head of Office Dr Vinod Ranga and an alleged supplier-cum-liaisoner identified as Rajiv Rangila, alongside other senior health officials. Detectives allege that Rangila established a network of shell companies using proxy owners—including entities named F Med Devices, Technocrats, Raj Shree, Ashi Surgical and Pharmaceuticals, and M Sahib and Sons Pvt Ltd—which were then quickly certified as authorized distributors by colluding manufacturers. The ACB discovered that eligibility conditions were intentionally kept excessively stringent to eliminate genuine competitors, allowing these shell firms to secure lucrative state contracts despite lacking the necessary financial turnover or operational experience.
Furthermore, forensic analysis of the procurement process exposed severe digital and administrative manipulation. Work orders were allegedly issued manually on the exact day the bids were opened, completely bypassing the mandatory Government e-Marketplace digital platform. To keep the contract values hidden from public oversight, the tenders were deliberately left as “active” or “under process” on the public portal long after payments were cleared. While traditional, genuine suppliers reportedly faced payment delays of up to two years, the firms connected to the accused received full financial clearances within twenty-four hours of invoicing.
The ACB has formally registered the case under stringent provisions of the Prevention of Corruption Act and criminal conspiracy sections of the Bharatiya Nyaya Sanhita. Dr Aggarwal had previously been removed from her post as DGHS chief on May 21, transferred to Guru Teg Bahadur Hospital, and subsequently suspended under the directions of Delhi Lieutenant Governor Taranjit Singh Sandhu to allow for an unhindered disciplinary inquiry. In a parallel administrative crackdown, the Delhi Government has suspended five pharmacists and two additional CPA officials as the multi-agency investigation continues to map out the entire fraudulent network.
