New Delhi: HL July 09, 2026
The Anti-Corruption Branch (ACB) has alleged major irregularities in the Delhi Government’s alleged Rs. 650-crore medical procurement scam, claiming that a network of proxy companies received government contracts worth hundreds of crores while key procurement procedures were bypassed.
According to submissions made before a Delhi court and details mentioned in the FIR, investigators have identified several companies that allegedly acted as vendors for the procurement of medicines, surgical equipment, portable X-ray machines, operation theatre equipment, hospital linen and other medical supplies.
Vendor Network Under Scanner
The ACB told the court that one of the companies awarded government contracts had a doctor’s domestic employee listed as its director, while another company was registered from a small 20-square-metre premises. Investigators suspect that these firms were part of a larger network allegedly controlled by the main accused, Rajiv Arora alias Rajiv Rangila, who remains absconding.
The probe covers several companies, including F-Med Devices, Temptex, R.S. Surgicals, Rajshree, and M. Sahib & Sons. The agency is examining financial transactions exceeding Rs. 200 crore linked to these firms. Investigators also allege that companies operating from minimal infrastructure received contracts worth crores despite questions over their operational capacity.
Officials Defend Their Role
Former Director General of Health Services (DGHS) Dr. Vatsala Aggarwal informed the court that she had signed only those files that had completed all procedural scrutiny and maintained that every decision was taken in accordance with established rules. She also expressed her willingness to cooperate with the investigation.
Former Central Procurement Agency (CPA) head Dr. Vinod Kumar Ranga stated that procurement rules were followed during his tenure and claimed that the missing files disappeared only after he had left office.
The Rouse Avenue Court extended the judicial custody of Dr. Vatsala Aggarwal, Dr. Vinod Kumar Ranga, and former Deputy Controller of Accounts Neeraj Chopra until July 20, while the investigation continues.
FIR Alleges Same-Day Tender, Purchase Order and Supply
In a separate set of allegations contained in the FIR, the ACB has claimed that normal government procurement procedures were bypassed in several purchases made through the Central Procurement Agency.
According to the FIR, in multiple instances the tender was finalised, the purchase order was issued, and the supply of materials was shown as completed on the same day, with payments allegedly released the following day.
The agency says that standard procurement practices normally require multiple stages, including supply verification, quality inspection and bill scrutiny before payments are approved. Investigators allege that these mandatory steps were either compressed unusually or ignored altogether.
Hospital Linen Purchases Also Under Investigation
The FIR further alleges irregularities in the procurement of hospital linen, including bedsheets and pillow covers, for Delhi Government hospitals. Investigators claim that purchases were made without corresponding demand from hospitals and that officials later pressured hospitals to issue demand letters to justify completed procurements.
The ACB has also alleged that hospitals were instructed to repeatedly revise their demand for bedsheets in different colours, a move that investigators believe may have been used to inflate procurement volumes.
The Anti-Corruption Branch is continuing its investigation into the alleged financial irregularities, procurement practices, and the role of public officials and private vendors involved in the case. The allegations remain under investigation and are yet to be tested in court.
