Delhi ACB probes broker role in Rs 700 crore medical procurement scam

The Anti-Corruption Branch (ACB) of the Delhi Police is investigating the role of an accused contractor in a Rs 700-crore medical procurement fraud involving the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS) in Delhi. The probe follows an FIR registered on June 2 after the Department of Vigilance detected procurement irregularities during raids at CPA offices in May.
Investigators describe the accused contractor as a broker who allegedly created multiple shell firms to benefit select manufacturers. He is accused of playing a central role in rigging tenders for medicines, surgical items, consumables, and medical equipment by fixing supply rates and arranging cash kickbacks.
According to the Vigilance Department's complaint, the broker drafted restrictive tender specifications in collusion with manufacturers to favour pre-decided firms. These documents were then routed to Dr Vinod Kumar Ranga, the Head of Office of the CPA, who presented them to the tender committee.
Former DGHS chief Dr Vatsala Aggarwal, who was arrested over the weekend, allegedly gave the final sanction to these skewed tender terms. Tender committees were reportedly coerced into approving the tailor-made specifications.
To block genuine competitors, criteria such as turnover, experience, and performance were set at exorbitant levels. However, the broker's front firms were allowed to qualify. Technical evaluation sheets were reportedly prepared by the broker and handed to Dr Ranga for fast approval, while financial bids were opened secretly on the same day.
The FIR claims that award approvals and purchase orders were issued manually outside of standard e-procurement or Government e-Marketplace (GeM) workflows, often within hours of bid opening. Furthermore, online tender statuses were allegedly manipulated to show completed awards as "Active" or "Under Process" to conceal them from public scrutiny.
While payments to legitimate, existing suppliers were reportedly stalled for up to two years, orders tied to the broker saw payments released within one to two days.
The ACB is currently examining tender files, procurement portals, payment records, and corporate structures to establish links. The accused contractor remains under the scanner and may be called for questioning or arrested as the investigation continues.



