Delhi Medical Procurement Scam Ed Probe Case

The Enforcement Directorate (ED) has launched a probe into medical equipment and medicine procurement fraud case linked to the Central Procurement Agency (CPA), which was so far being probed by the Delhi government’s Anti-Corruption Branch (ACB). Investigators suspect that tailor-made specifications during the procurements were framed to favour select suppliers, and genuine competitors were excluded from the bidding process. Government funds worth more than Rs 350 crore were allegedly misutilised, according to sources.

The ED, which is the first central agency to launch an investigation into the alleged fraud, has sought records and documents pertaining to CPA and the Directorate General of Health Services (DGHS) under the provisions of Prevention of Money Laundering Act, 2002. It has also sought details such as procurement of portable X-ray machines, C-Arm radiological equipment, anesthesia workstations, oral rehydration solution (ORS), bed sheets covers, surgical items, including dressings, sutures, cannulas and gloves, and medicines.

In a letter to Director General Health Services Dr Sushma Jain, the investigation agency has also sought the details of the tendering process, technical and financial evaluation, award of contracts, supply, inspection, acceptance and release of payments related to the procurements, under scanner, including transactions and dealings involving manufacturers and their authorised distributors or vendors; and other entities associated with the aforesaid procurements.

This comes after the ACB last week arrested Dr Vinod Kumar Ranga in the case over alleged discrepancies in the procurement of medicines and medical equipment for government hospitals in the national capital. Now in judicial custody, Dr Ranga was serving as the Head of Office of the CPA, the nodal agency responsible for procuring medicines and equipment for public healthcare facilities. He was suspended after the Directorate of Vigilance conducted raids at the CPA office in May.

According to ACB officials, the Directorate of Vigilance, Government of National Capital Territory of Delhi (GNCTD), had submitted a complaint alleging large-scale irregularities in the procurement of medicines, surgical items, consumables and medical equipment by the CPA under the Directorate General of Health Services (DGHS). It was alleged that certain public servants and private individuals entered into a criminal conspiracy and manipulated procurement processes, tender conditions and technical specifications to provide undue advantage to selected firms and suppliers, causing wrongful loss to the government exchequer and corresponding gain to private parties.

Dr Vatsala Aggarwal, the former DGHS, was also suspended amid allegations of the massive scam.