Delhi medical procurement fraud: Role of supplier who ‘manipulated’ tenders under scanner

An ACB probe into Delhi's Rs 700-crore health procurement scam reveals how a "broker" rigged tenders, bypassed GeM workflows, and fast-tracked shell firm payments.

4 min readJun 30, 2026 11:42 AM IST First published on: Jun 30, 2026 at 11:27 AM IST

As probe deepens into the Rs 700-crore fraud case linked to the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS) in Delhi, the role of a “contractor” — accused of manipulating tenders and siphoning off public funds — is under scanner, The Indian Express has learnt.

Described by investigators as a broker, he reportedly created multiple shell firms in an alleged attempt to benefit a few manufacturers and played a central role in rigging tenders for medicines, surgical items, consumables and equipment. He is accused of tying up with manufacturers, fixing supply rates and arranging cash kickbacks, said sources.

Said a senior officer, “The FIR mentions the name. His role is being probed and he is on the radar. If required he will be called for questioning and may be arrested also.”

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

A complaint regarding the alleged scam and irregularities in procurement for health facilities in the Capital was filed by the Department of Vigilance with the Anti-Corruption Branch (ACB) of the Delhi Police, which was later converted into an FIR on June 2. The alleged irregularities first came to light in May this year when the Department of Vigilance conducted raids at the CPA offices following complaints regarding procurement discrepancies.

The complaint from the Vigilance Department names several firms allegedly used as fronts and alleged the “liaisoner” was the real operator behind those entities, sources said.

“Tender specifications and terms were prepared to favour the pre-decided firms… with the liaisoner/supplier drafting restrictive specifications in collusion with manufacturer contacts. Those documents were then reportedly routed to Dr Vinod Kumar Ranga, Head of Office (HOO) of CPA, who presented them to the tender committee,” the complaint stated.

Tender committees were allegedly coerced into approving these tailor-made specifications, according to the complaint and former DGHS Dr Vatsala Aggarwal, who was arrested over the weekend in the case, allegedly gave final sanction to the skewed tender terms.

ALSO READ | ‘Inflated bills, missing files’: Former health services chief, ex-CPA official arrested in medical procurement scam

The “broker’’ then allegedly ensured that the front firms submitted bids, criteria such as turnover, experience and performance were set at exorbitant levels to discourage genuine competitors, yet the shell firms were allowed to qualify.

The complaint further charges that technical evaluation sheets were prepared by the “broker/ supplier’ and handed to Dr Ranga for fast approval, while financial bids were opened secretly the same day. Award approvals and purchase orders, the FIR claims, were issued manually and outside the e-procurement or Government e-Marketplace (GeM) workflows — often within hours of bid opening.

The FIR alleges deliberate manipulation of online tender statuses to conceal completed awards. Long-closed procurements, for which full payments were allegedly released, reportedly remained listed as “Active” or “Under Process” on public procurement portals, preventing scrutiny by other suppliers and the public. Payments to existing, legitimate suppliers allegedly stalled for up to two years, while orders tied to the “liaisoner” saw payment re’;’leased within one/two days. The complaint contends that tenders worth several hundred crores may have been awarded under this arrangement.

The ACB has confirmed registration of an FIR and said preliminary inquiries are underway. Investigators will examine tender files, procurement portals, payment records and the corporate structures of the named firms to establish links alleged in the complaint. Officials contacted for comment have not yet responded to questions about the timeline for arrests or asset tracing.

The allegations add to scrutiny of procurement practices in the Delhi health department after recent action against senior officials. The probe aims to determine the extent of the financial damage and to recover any proceeds of the alleged malpractice, said sources.