Delhi Medical Procurement Scam: ACB alleges firms linked to servant, small plot owner secured contracts

New Delhi: The Anti-Corruption Branch (ACB) on Tuesday made startling revelations before a Delhi court in the alleged Rs 700-crore medical procurement scam, claiming that firms linked to individuals with modest backgrounds secured contracts worth hundreds of crores through reportedly manipulated procurement processes. 

During the hearing, the ACB told the court that one of the company directors under investigation had allegedly worked as a "servant" to a doctor. At the same time, another owned only a 20-square-metre plot. Despite this, the firms associated with them reportedly handled government contracts running into hundreds of crores.

Also Read:Rs 12.63 crore PMCH procurement scam: ED files supplementary chargesheet

“A director of a company was a servant to some doctor. The transaction was of more than 200 crores. Another director had only a 20 square metre plot,” Chief Public Prosecutor Pramod Kumar, on behalf of the ACB, informed the court.

The ACB further alleged that officials bypassed the Government e-Marketplace (GeM), the Centre's online procurement platform, by awarding contracts through individual agreements.

“Without proceeding further in Government E-marketplace (a digital platform for procurement of goods & services), the accused gave individual agreements. All the hospitals got their purchases through the Central Procurement Agency (CPA),” the prosecutor told the court.

The CPA is the nodal agency responsible for procuring medicines, vaccines and medical equipment for Delhi government hospitals and healthcare facilities.

The case pertains to alleged large-scale irregularities in medical procurement by Delhi's health department. The former Director General of Health Services (DGHS), the former CPA Deputy Controller of Accounts, and the former CPA Head of Office have been arrested in connection with the case.

Medical Dialogues had previously reported that two more former senior officials have been sent to judicial custody till July 7 as the Anti-Corruption Branch (ACB) intensifies its investigation into alleged irregularities in the procurement of medicines, medical equipment, and healthcare supplies for Delhi government hospitals.

The case originated from a complaint by the Vigilance Department, which resulted in an FIR being registered on June 2. Investigators alleged widespread irregularities in the procurement process, including manipulated tenders and the siphoning of public funds meant for medicines, surgical supplies and hospital equipment. 

According to the Indian Express, “They (the accused) went to GeM after the tender was floated… They selected firms of their preference and prepared a supply order in a physical form. All the files are missing; only the payment orders are there,” the ACB submitted in the court. “The decisions were taken in a collective manner. Every decision was taken by the former Director General of Health Services. Bids of tenders had been pending since 2024 as well,” it added. 

Seeking a 14-day extension of judicial custody for the three accused, the ACB informed the court that the role of other public servants, private individuals and beneficiary firms was still under investigation. It said investigators were examining electronic evidence, recording witness statements, tracing the money trail and collecting crucial documentary evidence.

Allowing the custody request, Special Judge Dheeraj Mor of Rouse Avenue Court said, “Considering the grounds mentioned in the application and having regard to the facts and circumstances of the present case, including seriousness of the allegations, all three accused are remanded to Judicial Custody, and they will be produced on July 20,” he said, reports Indian Express.

Meanwhile, the former Head of Office, CPA, identified by the ACB as a medicine supplier and pharmaceutical trader, remains absconding. The agency told the court that raids were conducted at eight locations, including a shop in Lakshmi Nagar, but he could not be traced.

According to the ACB, he owns multiple properties, including a farmhouse in Karnal and another property in Rishikesh. The court has issued a non-bailable warrant against him.

During the hearing, the former Director General of Health Services, who was seemingly in tears, informed the Judge, “In all those files which came to me, I just signed them. All were L1 drawn with proper justifications. I’ve got 30 more departments besides CPA. After the file is signed by me, it is sent back. In no way have I flouted any rules. I’m ready to help with the investigation. I may not be sent to jail,” she said. L1 refers to the bidder who has submitted the lowest responsive price after successfully clearing all technical and eligibility checks, reports The Indian Express.

The former CPA official also denied the allegations, stating that all procurement rules had been followed and claiming that the relevant files disappeared during his absence.

Also Read:2 more former Delhi health officials sent to judicial custody in medical procurement scam