The Anti-Corruption Branch (ACB) has intensified its investigation into the alleged irregularities in the procurement of medicines, medical equipment and healthcare supplies for Delhi government hospitals, with two more former senior officials being sent to judicial custody till July 7. Investigators have indicated that private individuals linked to the procurement process could also be questioned as the probe progresses.
Former Director General of Health Services (DGHS) Dr. Vatsala Aggarwal and former Deputy Controller of Accounts of the Central Procurement Agency (CPA), Neeraj Chopra, were arrested in connection with FIR No. 07/2026, which relates to alleged manipulation of government procurement procedures. Their arrests follow that of former CPA Head of Office Dr. Vinod Kumar Ranga, taking the total number of arrests in the case to three.
Speaking about the investigation, an ACB source said the agency has not yet reached a conclusion on the total financial loss. While procurement worth around Rs 650-700 crore is under scrutiny, investigators are still verifying how much material was actually supplied, whether the rates were inflated and if any wrongful gain was caused. “There are prima facie indications that some items may have been overpriced, but the exact extent can only be established after detailed scrutiny of records,” the officer said.
According to the officer, the investigation remains at an early stage and further action will depend entirely on evidence collected during the probe. “If the role of any private player emerges, they may be called for questioning,” the officer added.
The case originated from a complaint by the Directorate of Vigilance, which alleged that procurement norms were manipulated to favour selected suppliers. Investigators suspect that tender specifications were tailored to restrict competition and enable contracts to be awarded at inflated prices for medical equipment, medicines, surgical consumables, bed linen, portable X-ray machines, anaesthesia workstations, C-arm radiological equipment and other healthcare products.
The ACB is also examining the role of an alleged middleman who is suspected of acting as a liaison between officials and private suppliers. According to sources, the suspect allegedly operated through multiple firms and influenced procurement decisions, although investigators have not reached any final conclusion regarding the entities involved.
Officials said records are currently being collected from several agencies, including the Registrar of Companies (RoC), to determine whether any firms linked to the procurement process were shell companies. Financial documents, procurement files and payment records are also being examined to establish the alleged money trail.
Investigators maintain that the inquiry remains open and additional individuals may come under scrutiny as fresh evidence emerges. The focus now is on identifying the complete chain of decision-making, determining the extent of any overpricing and establishing whether a wider conspiracy influenced procurement decisions within the Central Procurement Agency.