Multi-crore medical equipment procurement fraud case: ED seeks records from CPA

In a letter to Director General Health Services (DGHS) Dr Sushma Jain, the investigation agency has also sought the details of the tendering process, technical and financial evaluation, award of contracts, supply, inspection, acceptance and release of payments related to the procurements, under scanner, including transactions and dealings involving manufacturers and their authorised distributors or vendors; and other entities associated with the aforesaid procurements.

This comes after the ACB last week arrested Dr Vinod Kumar Ranga in the  case over alleged discrepancies in the procurement of medicines and medical equipment for government hospitals in the national capital. Now in judicial custody, Dr Ranga was serving as the Head of Office of the CPA, the nodal agency responsible for procuring medicines and equipment for public healthcare facilities. He was suspended after the Directorate of Vigilance conducted raids at the CPA office in May.

According to ACB officials, 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.

Dr Vatsala Aggarwal, the former DGHS, was also suspended amid allegations of the massive scam.