Probe Intensifies as Enforcement Directorate Joins Multi-Agency Investigation into Alleged Procurement Irregularities
The Enforcement Directorate (ED) has registered a money laundering case under the Prevention of Money Laundering Act (PMLA) in connection with the alleged ₹600 crore Delhi health procurement scam, significantly intensifying the ongoing investigation into alleged irregularities in the purchase of medicines, medical equipment, surgical consumables, and other healthcare supplies.
The case originates from allegations of large-scale financial irregularities in procurements carried out by the Central Procurement Agency (CPA) under the Directorate General of Health Services (DGHS). The investigation was initiated after the Directorate of Vigilance referred a complaint to the Delhi Government’s Anti-Corruption Branch (ACB).
Alleged Manipulation of Tender Process Under Scanner
According to the complaint, public officials and private suppliers allegedly entered into a criminal conspiracy to manipulate tender conditions and technical specifications to favour select vendors. Investigators allege that the changes enabled certain companies to secure contracts at inflated prices, resulting in substantial financial losses to the public exchequer while benefiting private firms.
The procurements under scrutiny reportedly include portable X-ray machines, C-Arm radiological equipment, anaesthesia workstations, Oral Rehydration Solution (ORS), medicines, surgical consumables, bed sheets, and hospital linen.
Missing Procurement Records Raise Suspicion
During the preliminary investigation, the Anti-Corruption Branch examined procurement documents and reportedly found that several crucial files linked to multiple procurements were missing. These records allegedly related to purchases of portable X-ray machines, C-Arm equipment, anaesthesia workstations, ORS supplies, medicines, surgical consumables, and linen.
Investigators claimed that the files were in the personal custody of the former Head of Office of the Central Procurement Agency. The official allegedly failed to provide satisfactory explanations regarding the missing documents, prompting investigators to seek custodial interrogation to recover records, identify other suspected conspirators, and trace alleged financial transactions.
Former CPA Head Arrested; More Officials Under Investigation
The former Head of Office of the Central Procurement Agency was arrested on June 18 and produced before a court the following day. The court granted four days of police custody to facilitate further interrogation.
According to the Anti-Corruption Branch, the investigation has now expanded to examine the role of several other government officials, private individuals, suppliers, and vendors allegedly linked to the procurement process.
Earlier, Delhi Chief Minister Rekha Gupta also recommended the registration of FIRs against two more doctors in connection with the alleged procurement scam. The Directorate of Vigilance is conducting a parallel departmental inquiry.
ED Seeks Procurement and Financial Records
With the registration of the money laundering case under the PMLA, the Enforcement Directorate’s Delhi Zonal Unit-2 has formally sought procurement-related records from the Delhi Government’s Health Department.
The agency has written to the Director General of Health Services seeking complete documentation related to the procurement process, including tender documents, technical and financial evaluations, contract awards, supply records, inspection reports, acceptance certificates, payment releases, and financial transactions connected with the procurements under investigation.
The ED has also sought details regarding manufacturers, authorised distributors, vendors, and other entities involved in the supply chain, particularly those associated with portable X-ray machines, C-Arm systems, and anaesthesia workstations.
Multi-Agency Investigation Continues
The former Director General of Health Services has also been suspended in connection with the case. The alleged procurement scam is currently being investigated by multiple agencies, including the Anti-Corruption Branch, the Directorate of Vigilance, and the Enforcement Directorate.
Authorities are continuing to examine procurement records, financial transactions, and the alleged involvement of public officials and private suppliers as the investigation progresses.
