New Delhi| HL June 23, 2026
The investigation into the alleged 650-crore procurement scam in Delhi’s Health Department has widened significantly, with Chief Minister Rekha Gupta ordering criminal proceedings against senior officials accused of violating procurement and financial norms in the purchase of medicines, surgical supplies and medical equipment for government hospitals.
Acting on the Chief Minister’s directions, authorities have initiated legal proceedings against former Director General of Health Services (DGHS) Dr. Vatsala Aggarwal and Deputy Controller of Accounts Neeraj Chopra under the Prevention of Corruption Act. Both officials have already been suspended and are now facing investigation over their alleged roles in the controversial procurement process.
The development marks a major escalation in the government’s crackdown on alleged corruption in the health sector. The case is being investigated by the Anti-Corruption Branch (ACB), which is probing irregularities in purchases made through the Central Procurement Agency (CPA), the nodal body responsible for procuring medicines, medical equipment and hospital consumables for Delhi Government healthcare institutions.
Probe Expands After Ranga’s Arrest:
The latest action follows the arrest of former CPA head Dr. Vinod Kumar Ranga, who was earlier suspended from service after investigators found alleged irregularities in procurement decisions. His arrest opened the door to a broader investigation into the functioning of the procurement system and the role of senior officials involved in approving purchases and financial clearances.
Investigators believe the alleged scam may have caused substantial losses to the government exchequer through purchases that were either unnecessary, excessive or not backed by actual demand from hospitals.
Allegations of Excess Procurement:
According to officials associated with the investigation, large quantities of medicines, surgical materials and medical equipment were allegedly procured without receiving proper requisitions from hospitals. In several cases, supplies were reportedly delivered despite limited or no demand from healthcare facilities.
The probe is examining whether procurement decisions were taken in violation of established government rules and whether public funds were spent without adequate assessment of requirements. Investigators suspect that equipment and medicines worth hundreds of crores were purchased and distributed without proper planning, resulting in wastage and financial losses.
Authorities are also looking into allegations that procurement procedures may have been manipulated to benefit selected suppliers through irregular tendering and approval processes.
Scrutiny of Files and Financial Records:
The Anti-Corruption Branch has begun a detailed examination of procurement files, approval notes, payment records, tender documents and stock registers maintained by various hospitals and government agencies.
Officials said investigators are tracing the entire chain of decision-making—from demand generation and procurement approvals to payments and distribution—to determine responsibility at different levels of the administration.
Sources indicate that several current and former officials connected with the procurement process are being questioned, and additional action may follow depending on the findings of the investigation.
Chief Minister Seeks Time-Bound Inquiry:
Chief Minister Rekha Gupta has termed the matter extremely serious and directed officials to ensure a fair, transparent and time-bound investigation. She has instructed departments concerned to regularly review the progress of the probe and ensure accountability for any misuse of public money.
“The government is committed to transparency and clean governance. Misuse of taxpayers’ money will not be tolerated, and those found responsible will face strict legal action,” officials quoted the Chief Minister as saying.
Major Test for Health Department:
The case is emerging as one of the biggest corruption investigations involving Delhi’s public healthcare system in recent years. With senior officials, including a former DGHS and the former head of the procurement agency, already under scrutiny, the probe is expected to have far-reaching implications for procurement practices in government hospitals.
As investigators continue to gather evidence and examine records, more arrests and departmental action cannot be ruled out. The findings of the inquiry are expected to shape future reforms in Delhi’s healthcare procurement system and strengthen oversight mechanisms aimed at preventing misuse of public funds.
