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Week after raids over ‘Rs 350-crore procurement irregularities’, CAT stays DGHS transfer

Transferred without any significant posting, she says

Health ministryChallenging the transfer order, Dr Aggarwal had said she was transferred without being assigned any substantive posting. (File image)

The Central Administrative Tribunal (CAT) on Wednesday stayed the order passed by the Lieutenant Governor’s Office to transfer Dr Vatsala Aggarwal from the post of Director General of Health Services (DGHS), Delhi, and replace her with the medical superintendent of Jag Pravesh Chandra Hospital.

“This Tribunal finds that the applicant has made out a prima facie case for interim protection. The balance of convenience also lies in favour of the applicant and irreparable prejudice may be caused if the impugned order is allowed to operate during pendency of the OA. Accordingly, till the next date of hearing, operation of the impugned order dated 21.05.2026 shall remain stayed,” said the CAT, a quasi-judicial body that hears out the grievances of state and central government employees. The next hearing is scheduled for May 29.

Challenging the transfer order, Dr Aggarwal had said she was transferred without being assigned any substantive posting.

The Indian Express had reported on May 23 that raids were conducted by the Delhi Directorate of Vigilance on May 20 and May 21 at the office of the Central Procurement Agency (CPA), which procures medicines and surgical consumables for all institutions of Delhi government, following complaints of alleged irregularities in tenders related to medicines, surgical items and medical equipment.

Dr Aggarwal was transferred amid the probe following the order from LG’s Office dated May 21.

Sources claimed that complaints had been received regarding procurement of medicines and medical equipment worth over Rs 350 crore at prices allegedly higher than prevailing market rates. Questions were also allegedly raised over the necessity of these purchases, procurement procedures and possible financial irregularities.

In her application challenging the transfer order, Dr Vatsala said that the procurement of medicines, machinery, medical equipment, and allied items was being undertaken through the CPA, which functioned as a separate establishment having an independent Head of Office, Dr VK Ranga, responsible for custody and maintenance of procurement records and files.

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On May 18, she added, officers of the Directorate of Vigilance visited her office and sought procurement-related files pertaining to DGHS. She said she informed the officers that the said files were not in her custody and disclosed that the records were lying with Dr VK Ranga, Head of Office, CPA.

She also issued a communication on May 18 to the Special Secretary, Vigilance, requesting that the specific list of files required be supplied.

The next day, she said, the Directorate of Vigilance issued a formal requisition, seeking various procurement files relating to medicines, surgical items, radiological equipment, ORS, and anesthesia workstations. Since Dr VK Ranga was on medical leave, the available records through the Link Officer were furnished to the Vigilance Department with an assurance that the remaining files would be supplied upon his resumption of duties.

On May 20, she further addressed a communication to the Directorate of Vigilance requesting shadow files/duplicate copies of the records taken away by the Vigilance Team since the files related to live procurement contracts and were required for continuity of patient care and procurement decision-making.

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She said that despite her cooperation, the LG office issued the order and transferred her.

The CPA, the nodal authority under DGHS for the Government of National Capital Territory of Delhi, is responsible for acquiring medicines, surgical consumables, and medical equipment for all state-run hospitals and healthcare facilities.

The Directorate General of Health Services (DGHS) Delhi is the apex agency under the Delhi government’s Department of Health and Family Welfare. It is the principal body responsible for implementing state and national health programmes, managing primary and secondary healthcare, and regulating healthcare facilities across the National Capital Territory of Delhi.

Sources claimed the Directorate of Vigilance had allegedly received confidential complaints regarding irregularities in the procurement process of medicines and medical equipment, following which a Vigilance team reached the CPA office and initiated an investigation.

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During the raid, the team allegedly seized files related to procurement of medicines and medical equipment.
The officials are now allegedly examining major tenders connected with hospitals and scrutinising documents related to X-ray and MRI machines, anesthesia machines, medicines, surgical equipment, chairs, modular operation theatres and other medical items.

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