The Delhi Health Department has rejected allegations of overpricing in the procurement of medicines, medical equipment, and hospital supplies by the Central Procurement Agency (CPA), stating that official records indicate several purchases were made at rates comparable to, or lower than, those paid by other government institutions across the country. The findings were submitted to the Delhi Government’s Directorate of Vigilance as part of the ongoing inquiry into alleged procurement irregularities.
Report Finds Procurement Prices Comparable to Government Rates
According to the report, procurement data obtained from the Centre’s Government e-Marketplace (GeM) portal showed that several key items, including World Health Organization (WHO)-formula oral rehydration salts (ORS), handheld ultra-portable digital X-ray machines, and hospital-grade bedsheets, were purchased at prevailing institutional rates.
However, the report clarified that price comparisons alone cannot determine the legality or efficiency of the procurement process. It stated that investigations into tender specifications, vendor selection, quality standards, inventory planning, and procedural compliance are continuing independently.
Multiple Agencies Investigating Procurement Process
The report comes amid parallel investigations by the Anti-Corruption Branch (ACB), the Directorate of Vigilance, and the Enforcement Directorate (ED) into alleged irregularities in procurements carried out by the CPA, which functions under the Directorate General of Health Services (DGHS).
The investigations relate to allegations concerning procurement pricing, tender conditions, vendor selection, and inventory management. Earlier, the ACB arrested the former Director of DGHS, the former head of the CPA, and the former Deputy Controller of Accounts in connection with the case.
Health Department Cites GeM Procurement Records
According to the report, procurement prices should be assessed by comparing them with similar institutional purchases rather than retail market prices.
Regarding allegations that WHO-formula ORS sachets were procured at inflated rates, the report noted that several government institutions, including Northern Coalfields Ltd, Employees’ State Insurance Scheme (Odisha), SAIL Bhilai Steel Plant, IISCO Steel Plant, PGIMER Chandigarh, Western Railway Jaipur, Banaras Hindu University, and Lok Nayak Hospital, purchased similar ORS sachets at ₹8.74 per unit.
The report stated that the CPA procured 1.5 million ORS sachets at an effective price of ₹8.69 per sachet before GST after a 60.5% discount on the printed MRP of ₹23.11. It added that claims of procurement at ₹2–₹2.50 per sachet were not supported by documentary evidence and did not account for differences in formulation, pack size, quality standards, or institutional procurement requirements.
X-Ray Machine and Bedsheet Pricing Also Defended
Addressing allegations that handheld ultra-portable digital X-ray machines worth around ₹10 lakh were purchased for approximately ₹33 lakh, the report stated that GeM records showed the same ProRad Atlas model had been procured by other government agencies at prices ranging from ₹32.98 lakh to ₹33.60 lakh.
According to the report, the CPA purchased the equipment at ₹32.98 lakh per unit, matching the lowest comparable government procurement price.
The report also rejected allegations regarding hospital bedsheets, explaining that government hospitals require specialised linen meeting prescribed standards for fabric quality, GSM, weave, dimensions, and durability.
After reviewing nearly 90 GeM contracts executed between early 2025 and mid-2026, the department found that institutional procurement prices generally ranged between ₹400 and ₹500 per bedsheet. It cited purchases by AIIMS Rishikesh, Dr Baba Saheb Ambedkar Hospital, Safdarjung Hospital, the Chief Medical Officer in Barabanki, and AIIMS Kalyani, where similar bedsheets were procured for ₹400 to ₹798 per unit. The report stated that the CPA’s procurement price of around ₹400 per bedsheet was among the most economical.
Investigation Into Procurement Process Continues
The inquiry stems from an FIR alleging a large-scale conspiracy involving the CPA and DGHS in the procurement of medicines, medical equipment, and hospital supplies.
The complaint alleged that officials colluded with private suppliers by framing restrictive tender specifications, creating fake firms to obtain contracts, disqualifying genuine bidders, and making procurements at inflated rates, resulting in wrongful losses to the government and corresponding gains to private entities.
The allegations also cover procurements of ORS sachets, portable digital X-ray machines, hospital bedsheets, C-arm equipment, anaesthesia workstations, and surgical consumables. Authorities have clarified that investigations into all procedural and administrative aspects of the procurement process remain ongoing.
Important Highlights
- The Delhi Health Department has rejected allegations of overpricing in CPA procurements based on GeM procurement records.
- The report found that ORS sachets, portable digital X-ray machines, and hospital-grade bedsheets were purchased at rates comparable to other government institutions.
- The department clarified that pricing alone cannot determine the legality of procurements, and broader investigations are continuing.
- The ACB, Directorate of Vigilance, and Enforcement Directorate are separately investigating alleged procurement irregularities.
- The inquiry relates to allegations of tender manipulation, vendor selection irregularities, and inflated procurement under the Central Procurement Agency.
