How doctor’s ‘servant’, small plot owner are linked to Rs 700-crore medical fraud
"A director of a company was a servant to some doctor. Transaction has been of more than 200 crores. Another director had only a 20 square metre plot," Chief Public Prosecutor Pramod Kumar, on behalf of the ACB, told the court.
The court will hear arguments by the lawyers of the other two accused, Vernon Gonsalves and Arun Ferreira, whose bails are sought to be cancelled by the NIA on July 20. (File Photo)
A company director allegedly worked as a “servant” to a doctor while another owned only a 20-square-metre plot: these were among the startling details disclosed by the Anti-Corruption Branch (ACB) in a Delhi court on Tuesday in connection with the alleged Rs 700 crore medical supplies fraud case. The agency claimed that despite their “modest” backgrounds, firms linked to the two directors — that are now under scanner — handled contracts worth hundreds of crores, alleging that procurement norms were manipulated to favour selected companies.
“A director of a company was a servant to some doctor. Transaction has been of more than 200 crores. Another director had only a 20 square metre plot,” Chief Public Prosecutor Pramod Kumar, on behalf of the ACB, told the court.
“Without proceeding further in Government E-marketplace (a digital platform for procurement of goods & services), the accused gave individual agreements. All the hospitals got their purchases through the Central Procurement Agency (CPA).” CPA is the nodal agency responsible for procuring and supplying medicines, vaccines and medical equipment to Delhi government hospitals and healthcare facilities.
The case pertains to an alleged medical procurement fraud within Delhi’s health department. Former Director General of Health Services (DGHS) Dr Vatsala Aggarwal, former CPA Deputy Controller of Accounts Neeraj Chopra and Dr Vinod Kumar Ranga, former Head of Office CPA, have so far been arrested by the ACB in the case.
The case began with a Vigilance Department complaint that was converted into an FIR on June 2, and revolves around alleged widespread irregularities, manipulated tenders, and the siphoning of public funds meant for medicines, surgical items, and hospital equipment.
“They (the accused) went to GeM after the tender was floated… They selected firms of their preference and prepared a supply order in a physical form. All the files are missing, only the payment orders are there,” the ACB submitted in the court.
“The decisions were taken in a collective manner. Every decision was taken by Dr Vatsala Aggarwal. Bids of tenders had been pending since 2024 as well,” it added.
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The agency also told the court, “The decisions were taken in a collective manner. Every decision was taken by Dr Vatsala Aggarwal. Bids of tenders had been pending since 2024 as well.”
The agency sought to extend the judicial custody of all three arrested accused by 14 days. It submitted that the role of other public servants, private individuals and beneficiary firms in the conspiracy of the offence was under investigation. It also submitted that crucial documentary evidence was yet to be collected and the Investigating Officer in the case was in the process of analysing electronic evidence, examining witnesses and verifying the money trail.
Allowing the custody request, Special Judge Dheeraj Mor of Rouse Avenue Court, said, “Considering the grounds mentioned in the application and having regard to the facts and circumstances of the present case including seriousness of the allegations, all three accused are remanded to Judicial Custody and they will be produced on July 20,” he said.
Rajiv Rangila, a key accused who the ACB said was a medicine supplier and pharmaceutical trader, is still absconding. The ACB also told the court that he had multiple cases against him. “We searched eight places including a small Lakshmi Nagar shop. We conducted raids on July 2. His house was locked. He has multiple properties including a farmhouse in Karnal and one property in Rishikesh,” the ACB said.The court also issued a non-bailable warrant against Rangila.
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During the hearing, Dr Aggarwal, who was seemingly in tears, told the Judge, “In all those files which came to me, I just signed them. All were L1 drawn with proper justifications. I’ve got 30 more departments besides CPA. After the file is signed by me, it is sent back. In no way, I have flouted any rules. I’m ready to help with the investigation. I may not be sent to jail,” she said.
L1 refers to the bidder who has submitted the lowest responsive price after successfully clearing all technical and eligibility checks.
Ranga who was also present in court said : “All the rules and regulations were followed. The files were vanished in my absence.”
Nirbhay Thakur is a Senior Correspondent with The Indian Express who primarily covers district courts in Delhi and has reported on the trials of many high-profile cases since 2023.
Professional Background
Education: Nirbhay is an economics graduate from Delhi University.
Beats: His reporting spans the trial courts, and he occasionally interviews ambassadors and has a keen interest in doing data stories.
Specializations: He has a specific interest in data stories related to courts.
Core Strength: Nirbhay is known for tracking long-running legal sagas and providing meticulous updates on high-profile criminal trials.
Recent notable articles
In 2025, he has written long form articles and two investigations. Along with breaking many court stories, he has also done various exclusive stories.
1) A long form on Surender Koli, accused in the Nithari serial killings of 2006. He was acquitted after spending 2 decades in jail. was a branded man. Deemed the “cannibal" who allegedly lured children to his employer’s house in Noida, murdered them, and “ate their flesh” – his actions cited were cited as evidence of human depravity at its worst. However, the SC acquitted him finding various lapses in the investigation. The Indian Express spoke to his lawyers and traced the 2 decades journey.
2) For decades, the Jawaharlal Nehru University (JNU) has been at the forefront of the Government’s national rankings, placed at No. 2 over the past two years alone. It has also been the crucible of campus activism, its protests often spilling into national debates, its student leaders going on to become the faces and voices of political parties of all hues and thoughts. The Indian Express looked at all court cases spanning over two decades and did an investigation.
3) Investigation on the 700 Delhi riots cases. The Indian Express found that in 17 of 93 acquittals (which amounted to 85% of the decided cases) in Delhi riots cases, courts red-flag ‘fabricated’ evidence and pulled up the police.
Signature Style
Nirbhay’s writing is characterized by its procedural depth. He excels at summarizing 400-page chargesheets and complex court orders into digestible news for the general public.
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