The Delhi government’s Anti-Corruption Branch (ACB) on Saturday arrested former Director General of Health Services (DGHS) Dr Vatsala Aggarwal for an alleged Rs 350 crore medical procurement scam. The multi-crore medical procurement scam involving medicines, surgical supplies and healthcare equipment. The scam was carried out by the Central Procurement Agency (CPA), which functions under the Directorate General of Health Services.
The arrest comes just days after the ACB took into custody Dr Vijay Kumar Ranga in the same case. A Delhi court had subsequently remanded Ranga to four days of police custody. The probe was launched after the Directorate of Vigilance flagged suspicious procurement practices and possible violations of established procedures.
Investigators have alleged that several medical items, including portable X-ray machines, C-arm radiological equipment, anaesthesia workstations, bed sheets, linen, oral rehydration solution (ORS), surgical consumables and medicines, were procured at highly inflated prices.
The ACB further alleged that tender specifications were allegedly designed to favour select suppliers, effectively keeping genuine bidders out of the procurement process and resulting in the alleged misuse of public funds amounting to hundreds of crores.
Based on the complaint, the agency filed an FIR on June 2 under relevant provisions of the Prevention of Corruption Act and criminal conspiracy sections of the Bharatiya Nyaya Sanhita. Officials said procurement files, tender documents and related records are currently being examined as part of the ongoing investigation.
Before her arrest, Aggarwal was removed from the post of Director General of Health Services on May 21 and placed under “awaiting posting” before being transferred to Guru Teg Bahadur Hospital. She was later suspended on the directions of Delhi Lieutenant Governor Taranjit Singh Sandhu to facilitate disciplinary proceedings.
Meanwhile, the Delhi government also suspended five pharmacists and two officials of the CPA after an internal inquiry reportedly found serious irregularities in the procurement, storage and management of medicines at multiple agency stores.
Issuing strict warning against the people involved in the scam, Delhi Chief Minister Rekha Gupta commented that her government follows a zero-tolerance policy against corruption and administrative negligence. Earlier, the Delhi CM had approved a corruption investigation against Aggarwal and other Health Department officials under Section 17A of the Prevention of Corruption Act. The Anti-Corruption Branch said the investigation is underway and is examining the possible involvement of other government officials as well as private suppliers in the alleged procurement scam.