Former Director General of Health Services arrested over alleged procurement scam involving medicines, surgical items and medical equipment worth hundreds of crores
In a significant development in the alleged multi-crore health procurement scam in Delhi, former Director General of Health Services (DGHS) Dr Vatsala Aggarwal was arrested by the Anti-Corruption Branch (ACB) on Saturday in connection with alleged financial irregularities in the procurement of medicines, surgical consumables and medical equipment, officials said.
The arrest comes just days after the ACB apprehended another accused in the same case, who was subsequently remanded to four days of police custody by a Delhi court.
ACB Investigating Procurement Irregularities Worth Hundreds of Crores
According to the Anti-Corruption Branch, the case relates to alleged large-scale financial irregularities in procurements worth several hundred crores undertaken by the Central Procurement Agency (CPA), which functions under the Directorate General of Health Services (DGHS).
The investigation was initiated after the Directorate of Vigilance flagged suspicious transactions and possible procedural violations in the procurement process.
Inflated Procurement Rates and Alleged Tender Manipulation
Investigators alleged that procurements of portable X-ray machines, C-arm radiological equipment, anaesthesia workstations, oral rehydration solution (ORS), medicines, surgical consumables, bed sheets and linen were made at highly inflated prices through manipulated tender procedures.
The ACB further alleged that procurement specifications were deliberately tailored to favour selected suppliers, effectively eliminating genuine bidders from the tender process and resulting in the alleged misuse of public funds amounting to hundreds of crores.
Case Registered Under Prevention of Corruption Act and Bharatiya Nyaya Sanhita
Based on the complaint, the Anti-Corruption Branch registered an FIR on June 2 under relevant provisions of the Prevention of Corruption Act along with criminal conspiracy provisions of the Bharatiya Nyaya Sanhita (BNS).
Officials said procurement records, tender documents and other related files are being thoroughly examined as part of the ongoing investigation.
Dr Vatsala Aggarwal Removed From DGHS Post Before Arrest
Prior to her arrest, Dr Vatsala 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 (GTB) Hospital.
Subsequently, she was suspended following directions from Delhi Lieutenant Governor Taranjit Singh Sandhu to facilitate disciplinary proceedings. Earlier, the Delhi government had directed her to report to the Medical Director of GTB Hospital for further duties.
Delhi Government Suspends Seven Officials
In a parallel administrative action, the Delhi government suspended five pharmacists and two officials of the Central Procurement Agency after an internal inquiry reportedly uncovered serious irregularities in the procurement, storage and management of medicines across agency stores.
Delhi Chief Minister Rekha Gupta reiterated that her government follows a zero-tolerance policy towards corruption and administrative negligence, warning that stringent action would be taken against any official found guilty.
The Chief Minister had earlier sanctioned a corruption investigation against Dr Vatsala Aggarwal and other Health Department officials under Section 17A of the Prevention of Corruption Act.
Investigation Continues
The Anti-Corruption Branch stated that the investigation is continuing to determine the role of other government officials and private suppliers allegedly involved in the procurement scam.
