Former DGHS chief and ex-CPA finance official remanded till July 7; Anti-Corruption Branch investigates alleged irregularities in procurement worth Rs 650–700 crore
The Anti-Corruption Branch (ACB) has intensified its investigation into the alleged multi-crore medical procurement scam involving Delhi government hospitals, with two more former senior health officials being sent to judicial custody till July 7. The arrests are part of the agency’s ongoing probe into alleged irregularities in the procurement of medicines, medical equipment and healthcare supplies under the Central Procurement Agency (CPA).
With the latest action, the total number of officials arrested in connection with the case has risen to three.
Probe Linked to FIR No. 07/2026
The investigation is being carried out under FIR No. 07/2026, which pertains to alleged manipulation of procurement procedures followed by the Central Procurement Agency.
According to reports, the newly arrested officials include the former Director General of Health Services (DGHS) and the former Deputy Controller of Accounts of the CPA. Their arrests follow the earlier detention of the former Head of Office of the Central Procurement Agency.
The case marks one of the most significant corruption investigations involving healthcare procurement in the national capital in recent years.
Procurement Worth Rs 650–700 Crore Under Scanner
According to officials associated with the investigation, procurement transactions worth approximately Rs 650 crore to Rs 700 crore are currently under scrutiny.
However, investigators clarified that the exact financial loss to the government has not yet been determined.
Officials said they are examining whether the contracted materials were actually supplied, whether procurement prices were inflated and whether any wrongful financial gains were obtained during the process.
An ACB source stated that there are prima facie indications suggesting certain items may have been procured at inflated rates, but the precise extent of the alleged loss will only be established after detailed scrutiny of procurement records and financial documents.
Tender Manipulation Alleged
The case originated from a complaint submitted by the Directorate of Vigilance, which alleged that procurement norms were deliberately manipulated to benefit select suppliers.
Investigators suspect that tender specifications may have been drafted in a manner that restricted competition, allowing contracts to be awarded at higher-than-market prices.
The products under investigation include:
- Medicines
- Surgical consumables
- Medical equipment
- Portable X-ray machines
- Anaesthesia workstations
- C-arm radiological equipment
- Bed linen
- Other healthcare supplies procured for Delhi government hospitals
Role of Middleman Also Under Investigation
The Anti-Corruption Branch is also examining the role of an alleged middleman suspected of coordinating between government officials and private suppliers involved in the procurement process.
According to sources, investigators suspect the individual may have operated through multiple firms to influence procurement decisions. However, officials emphasised that no final conclusions have been reached regarding the involvement of any companies or individuals.
Companies and Financial Records Under Scrutiny
As part of the ongoing investigation, the ACB is collecting records from multiple government agencies, including the Registrar of Companies (RoC).
Investigators are examining whether any firms linked to the procurement process were shell companies. Financial records, procurement documents, payment files and other official records are also being analysed to trace the alleged flow of funds and identify any financial irregularities.
More Individuals May Come Under Scanner
Officials indicated that the scope of the investigation may expand further if evidence emerges linking additional government officials, private individuals or companies to the alleged procurement irregularities.
The Anti-Corruption Branch has stated that further arrests or legal action will depend entirely on the evidence gathered during the investigation, which remains ongoing.
