Former Delhi health services chief arrested in Rs 350-crore medical procurement case

The ACB is examining financial transactions, procurement procedures, and officials’ involvement in the alleged irregularities.

With the arrest of Dr Vatsala Agarwal, the total number of arrests made by the ACB in connection with the case has risen to three. The investigation is ongoing.

The officials said the Directorate of Vigilance, Government of National Capital Territory of Delhi (GNCTD), had submitted a complaint alleging large-scale irregularities in the procurement of medicines, surgical items, consumables and medical equipment by the CPA under the Directorate General of Health Services (DGHS).

It was alleged that certain public servants and private individuals entered into a criminal conspiracy and manipulated procurement processes, tender conditions and technical specifications to provide undue advantage to selected firms and suppliers, causing wrongful loss to the government exchequer and corresponding gain to private parties.

On Friday, the Enforcement Directorate (ED) also sought documents related to the alleged scam from the DGHS. The agency has sought records and documents pertaining to CPA and the Directorate General of Health Services (DGHS) under the provisions of the Prevention of Money Laundering Act, 2002.

It has also sought details on the procurement of portable X-ray machines, C-Arm radiological equipment, anaesthesia workstations, oral rehydration solution (ORS), bed sheet covers, surgical items, including dressings, sutures, cannulas, and gloves, and medicines.