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

New Delhi: 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 action comes as the ACB expands its probe into FIR No. 07/2026, which relates to alleged manipulation of procurement procedures under the Central Procurement Agency (CPA). With these arrests, the total number of arrested officials in the case has risen to three. 

Also Read:Former Delhi DGHS chief arrested in multi-crore medical procurement scam

According to the news reports, the arrested officials include the former Director General of Health Services (DGHS) and the former Deputy Controller of Accounts of the CPA. They were taken into custody following earlier action against the former CPA Head of Office.

Medical Dialogues had previously reported that in a major development, the former Director General of Health Services (DGHS) was arrested on Saturday in connection with an alleged multi-crore procurement scam involving medicines, surgical items and medical equipment, officials said.

Speaking about the investigation, an ACB source said the agency has not yet reached a conclusion on the total financial loss. While procurement worth around Rs 650-700 crore is under scrutiny, investigators are still verifying how much material was actually supplied, whether the rates were inflated and if any wrongful gain was caused. "There are prima facie indications that some items may have been overpriced, but the exact extent can only be established after detailed scrutiny of records," the officer said, reports NDTV.

Officials also indicated that the scope of the probe may widen further. If evidence emerges linking private individuals or companies to the alleged irregularities, they will be called in for questioning.

The case originated from a complaint by the Directorate of Vigilance, which alleged that procurement norms were deliberately manipulated to favour select suppliers.

Investigators suspect that tender specifications were designed in a way that restricted competition, enabling contracts to be awarded at inflated prices. Items under scrutiny include medical equipment, medicines, surgical consumables, bed linen, portable X-ray machines, anaesthesia workstations, C-arm radiological equipment and other healthcare products.

The ACB is also investigating the role of an alleged middleman who is suspected of facilitating coordination between officials and private suppliers. Sources claim the individual may have operated through multiple firms to influence procurement decisions, though no conclusions have been reached regarding the entities involved.

Speaking to NDTV, officials said records are currently being collected from several agencies, including the Registrar of Companies (RoC), to determine whether any firms linked to the procurement process were shell companies. Financial documents, procurement files and payment records are also being examined to establish the alleged money trail.

The ACB has stated that further action will depend on evidence gathered during the investigation, and additional individuals may come under scrutiny as the probe progresses.

Also Read:5 Pharmacists, 2 Delhi Health Officials Suspended Over Medicine Procurement Irregularities