The Delhi government’s Anti-Corruption Branch (ACB) has arrested former Director General of Health Services (DGHS), Dr Vatsala Aggarwal, in connection with an alleged multi-crore scam involving the procurement of medicines, medical equipment and surgical supplies, officials confirmed on June 27.
Dr Aggarwal’s arrest comes shortly after the ACB apprehended Dr Vijay Kumar Ranga in the same case. A Delhi court subsequently remanded Ranga to four days of police custody for further investigation.
According to the ACB, the case involves alleged financial irregularities amounting to several hundred crores of rupees in procurements carried out by the Central Procurement Agency (CPA), which functions under the DGHS. The investigation was launched after the Directorate of Vigilance identified suspected irregularities and possible violations of procurement procedures.
Investigators have alleged that items including portable X-ray machines, C-arm imaging equipment, anaesthesia workstations, bed sheets and linen, oral rehydration solution (ORS), medicines and various surgical consumables were procured at significantly inflated prices through manipulated tendering processes.
The agency further claimed that procurement specifications were deliberately designed to benefit selected suppliers, effectively preventing legitimate bidders from participating and causing substantial losses to the public exchequer.
Based on these allegations, the ACB registered a case on June 2 under provisions of the Prevention of Corruption Act and sections related to criminal conspiracy under the Bharatiya Nyaya Sanhita. Officials said procurement records, tender documents and related files are currently under detailed examination.
Dr Aggarwal was removed from her position as DGHS on May 21 and placed under “awaiting posting” status before being transferred to Guru Teg Bahadur Hospital. She was later suspended on the directions of Delhi Lieutenant Governor Taranjit Singh Sandhu to facilitate disciplinary proceedings.
In a related development, the Delhi government on June 27 suspended five pharmacists and two officials of the Central Procurement Agency following an internal inquiry that reportedly uncovered serious irregularities in the procurement, storage and management of medicines across various agency facilities.
Chief Minister Rekha Gupta reiterated the government’s zero-tolerance approach towards corruption and administrative misconduct, warning that stringent action would be taken against any official found responsible for wrongdoing.
Earlier, the chief minister had approved a corruption investigation against Dr Vatsala Aggarwal and several other Health Department officials under Section 17A of the Prevention of Corruption Act.
The Anti-Corruption Branch said investigations are ongoing and efforts are underway to determine the involvement of other government officials and private suppliers in the alleged procurement scam.