ACB Expands Probe Into 650-Crore Medical Procurement Scam, Issues LOC Against Key Supplier

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The ACB has widened its probe into the alleged ₹650-crore medical procurement scam, investigating inflated bedsheet purchases, emergency drug procurement, forged documents and the supplier network, while continuing its search for absconding accused Rajeev Kumar Rangeela.

New Delhi: HL 06 July 2026

The Delhi Government’s Anti-Corruption Branch (ACB) has intensified its investigation into the alleged Rs. 650-crore medical equipment and drug procurement scam, expanding the probe to the supplier network and issuing a Look Out Circular (LOC) against pharmaceutical businessman Rajeev Kumar Rangeela, who has repeatedly failed to appear before investigators despite multiple notices.

ACB teams have conducted raids at several locations across Delhi-NCR and Uttarakhand to trace Rangeela, who is believed to have played a central role in the procurement network. Investigators suspect he may have left the country and are examining his business operations, financial transactions and links with suppliers involved in the alleged scam.

Bedsheets Purchased at Inflated Prices

Fresh findings in the investigation allege that hospital bedsheets were procured at highly inflated prices from three firms linked to members of the same family, raising serious concerns about collusion in the procurement process.

According to investigators, bedsheets that were available in the open market for around Rs. 150 per piece were allegedly purchased for Rs. 450 each for Delhi government hospitals. The ACB is also probing the alleged collusion between government officials and suppliers in the procurement of bedsheets worth nearly Rs. 25 crore.

The probe further alleges that the Rs. 75-crore bedsheet procurement was processed at an unusually fast pace, with the tender, approval and supply reportedly completed within a single day, followed by the release of payment the very next day.

Emergency Purchases, Fake Firms and Tender Manipulation

According to the FIR, the Central Procurement Agency (CPA) allegedly bypassed the normal tendering process while procuring medicines. Instead, medicines worth nearly Rs. 400 crore were reportedly purchased by invoking emergency provisions.

Investigators also suspect that nearly Rs. 300 crore in kickbacks were generated during the procurement process.

The FIR alleges that Rangeela created a network of shell companies and proxy firms to manipulate government tenders. These firms were allegedly registered in the names of different individuals while being controlled by the same network. Investigators claim that forged turnover certificates were submitted by several participating companies to qualify for tenders, while dummy firms were used to create the appearance of competitive bidding.

Authorities are examining financial records, business associates and family-linked entities to uncover the full extent of the alleged procurement network.

Vigilance Report Points to Obstruction of Investigation

The investigation has also revealed alleged attempts to obstruct the probe. A Vigilance Department report states that officials responsible for maintaining procurement records had left their offices before the inspection team arrived to seize documents.

Investigators reportedly found the concerned official’s mobile phone switched off, while attempts to contact him at his residence were unsuccessful. Officials present in the office allegedly refused to hand over key files, claiming they were in the personal custody of the concerned officer.

According to the FIR, the vigilance team spent 12 days collecting procurement records after repeated notices and reminders, with crucial documents allegedly being withheld during the initial stages of the investigation.

Two Doctors Arrested, Key Accused Still Absconding

Following the Vigilance Department’s preliminary findings, the ACB registered an FIR and subsequently arrested two doctors in connection with the case.

Meanwhile, Rajeev Kumar Rangeela remains absconding despite multiple raids at his suspected locations. Investigators continue to search for him while examining the role of suppliers, public officials and procurement agencies in what is emerging as one of Delhi’s biggest alleged public health procurement scams.