X-ray machines to ORS: FIR maps Rs 600-crore Delhi health procurement fraud
The Delhi Anti-Corruption Branch has filed an FIR alleging that a supplier-official nexus siphoned off over Rs 600 crore through grossly inflated medical procurement.
Rs 600 crore was allegedly siphoned off through inflated procurement of medicines, surgical supplies and medical equipment in Delhi, facilitated by an alleged nexus between suppliers and government officials, according to a complaint filed by the Delhi government's Vigilance Department. Based on the complaint, the Delhi Anti-Corruption Branch (ACB) has registered an FIR.
According to the case details, procurement prices for several essential medical items under the Directorate General of Health Services (DGHS) were allegedly inflated several times above prevailing market rates, resulting in substantial losses to the public exchequer.
The development comes two days after the Delhi government's Anti-Corruption Branch arrested former DGHS Director General Vatsala Aggarwal in connection with the multi-crore procurement scam. Her arrest followed that of another senior official, Vijay Kumar Ranga, in the same case.
The vigilance complaint details alleged discrepancies across multiple procurement categories.
In the case of portable X-ray machines, the FIR states that machines with similar specifications were supplied to other hospitals for around Rs 10 lakh per unit. However, the Central Procurement Agency (CPA) of the DGHS allegedly purchased each machine for Rs 33 lakh. A total of 448 machines were procured at a cost of Rs 148 crore, although their estimated market value was only about Rs 45 crore.
The Vigilance department also flagged the procurement of bedsheets. While comparable hospitals reportedly purchased bedsheets at around Rs 150 per piece, the DGHS allegedly paid Rs 450 per piece. The FIR claims that nearly Rs 75 crore was spent under the tender, despite the actual value of the supplies being around Rs 25 crore.
Another major discrepancy relates to C-arm radiological equipment. According to the FIR, machines with similar specifications were available at around Rs 25 lakh each, but the health directorate allegedly procured them for Rs 1.10 crore per unit. The total expenditure on these purchases stood at Rs 7.7 crore, while the equipment was allegedly worth only Rs 1.75 crore.
The complaint further points to the procurement of Oral Rehydration Salts (ORS). While other hospitals reportedly purchased ORS sachets for Rs 2.05 each, DGHS officials allegedly paid Rs 15 per sachet. The FIR states that Rs 7.5 crore was spent on ORS supplies that were allegedly worth only Rs 1.25 crore.
According to the complaint, the directorate also made payments of nearly Rs 100 crore for surgical supplies, whereas the material supplied was allegedly worth only Rs 20-25 crore.
The FIR alleges that the procurement process was manipulated to favour select suppliers, causing substantial losses to the exchequer. Investigators are expected to scrutinise tender documents, pricing records, procurement approvals and the role of officials involved in the purchases.
The allegations have triggered a political confrontation between the ruling BJP and the opposition AAP, with both sides trading charges over the alleged scam.
Addressing a press conference on Monday, Delhi AAP president Saurabh Bharadwaj alleged that the irregularities could not have been carried out by a single officer and accused the BJP government of centralising procurement to facilitate the purchases.
According to Bharadwaj, after the BJP assumed power in Delhi, hospitals were directed to route all purchases through the Central Procurement Agency rather than undertake procurement independently. He also alleged that Vatsala Aggarwal was appointed DGHS chief despite not being the senior-most officer and while facing a vigilance inquiry.
However, Delhi Health Minister Pankaj Singh dismissed the allegations as baseless. "Rs 650 crore was not even the expenditure in the whole exercise. Action will be taken based on the investigation report," Singh told reporters.
Delhi BJP Chief Whip Abhay Verma also rejected the opposition's accusations, asserting that the BJP government had acted proactively. "The Rekha government did not wait for a complaint but took suo motu cognisance and initiated action," Verma said.
The ACB has launched a detailed investigation to determine whether offences related to corruption, criminal conspiracy, misconduct and financial irregularities were committed in the award and execution of the contracts.
Rs 600 crore was allegedly siphoned off through inflated procurement of medicines, surgical supplies and medical equipment in Delhi, facilitated by an alleged nexus between suppliers and government officials, according to a complaint filed by the Delhi government's Vigilance Department. Based on the complaint, the Delhi Anti-Corruption Branch (ACB) has registered an FIR.
According to the case details, procurement prices for several essential medical items under the Directorate General of Health Services (DGHS) were allegedly inflated several times above prevailing market rates, resulting in substantial losses to the public exchequer.
The development comes two days after the Delhi government's Anti-Corruption Branch arrested former DGHS Director General Vatsala Aggarwal in connection with the multi-crore procurement scam. Her arrest followed that of another senior official, Vijay Kumar Ranga, in the same case.
The vigilance complaint details alleged discrepancies across multiple procurement categories.
In the case of portable X-ray machines, the FIR states that machines with similar specifications were supplied to other hospitals for around Rs 10 lakh per unit. However, the Central Procurement Agency (CPA) of the DGHS allegedly purchased each machine for Rs 33 lakh. A total of 448 machines were procured at a cost of Rs 148 crore, although their estimated market value was only about Rs 45 crore.
The Vigilance department also flagged the procurement of bedsheets. While comparable hospitals reportedly purchased bedsheets at around Rs 150 per piece, the DGHS allegedly paid Rs 450 per piece. The FIR claims that nearly Rs 75 crore was spent under the tender, despite the actual value of the supplies being around Rs 25 crore.
Another major discrepancy relates to C-arm radiological equipment. According to the FIR, machines with similar specifications were available at around Rs 25 lakh each, but the health directorate allegedly procured them for Rs 1.10 crore per unit. The total expenditure on these purchases stood at Rs 7.7 crore, while the equipment was allegedly worth only Rs 1.75 crore.
The complaint further points to the procurement of Oral Rehydration Salts (ORS). While other hospitals reportedly purchased ORS sachets for Rs 2.05 each, DGHS officials allegedly paid Rs 15 per sachet. The FIR states that Rs 7.5 crore was spent on ORS supplies that were allegedly worth only Rs 1.25 crore.
According to the complaint, the directorate also made payments of nearly Rs 100 crore for surgical supplies, whereas the material supplied was allegedly worth only Rs 20-25 crore.
The FIR alleges that the procurement process was manipulated to favour select suppliers, causing substantial losses to the exchequer. Investigators are expected to scrutinise tender documents, pricing records, procurement approvals and the role of officials involved in the purchases.
The allegations have triggered a political confrontation between the ruling BJP and the opposition AAP, with both sides trading charges over the alleged scam.
Addressing a press conference on Monday, Delhi AAP president Saurabh Bharadwaj alleged that the irregularities could not have been carried out by a single officer and accused the BJP government of centralising procurement to facilitate the purchases.
According to Bharadwaj, after the BJP assumed power in Delhi, hospitals were directed to route all purchases through the Central Procurement Agency rather than undertake procurement independently. He also alleged that Vatsala Aggarwal was appointed DGHS chief despite not being the senior-most officer and while facing a vigilance inquiry.
However, Delhi Health Minister Pankaj Singh dismissed the allegations as baseless. "Rs 650 crore was not even the expenditure in the whole exercise. Action will be taken based on the investigation report," Singh told reporters.
Delhi BJP Chief Whip Abhay Verma also rejected the opposition's accusations, asserting that the BJP government had acted proactively. "The Rekha government did not wait for a complaint but took suo motu cognisance and initiated action," Verma said.
The ACB has launched a detailed investigation to determine whether offences related to corruption, criminal conspiracy, misconduct and financial irregularities were committed in the award and execution of the contracts.
