Rs 600 crore Delhi Health Procurement Scam: ED registers money laundering case

New Delhi: In a major development, the Enforcement Directorate (ED) has registered a money laundering case under the Prevention of Money Laundering Act (PMLA) in connection with an alleged Rs 600 crore Delhi health procurement scam, officials said. 

The case stems from allegations of large-scale irregularities in the procurement of medicines, surgical items, consumables, and medical equipment by the Central Procurement Agency (CPA) under the Directorate General of Health Services (DGHS). The probe was initiated after the Directorate of Vigilance referred a complaint to the Anti-Corruption Branch (ACB) of the Delhi Government. 

Also Read:ACB arrests former CPA head in alleged DGHS procurement scam

According to the complaint, public officials and private suppliers allegedly entered into a criminal conspiracy to alter tender conditions and technical specifications to favour select vendors. The complaint claims that this led to significant financial losses to the public exchequer while benefiting certain private firms.

The items reportedly procured at inflated prices include portable X-ray machines, C-Arm radiological equipment, anaesthesia workstations, Oral Rehydration Solution (ORS), bed sheets, linen, surgical consumables, and medicines.

During its initial investigation, the ACB examined procurement records and found that key files related to multiple procurements were not produced. The records reportedly included documents linked to portable X-ray machines, C-Arm equipment, anaesthesia workstations, ORS supplies, surgical consumables, medicines, and linen procurement.

Investigators alleged that these files were in the personal custody of the former Head of Office of the Central Procurement Agency. According to the ACB, he failed to provide satisfactory explanations regarding missing records, prompting the agency to seek custodial interrogation to recover documents, identify co-conspirators, and trace alleged financial transactions 

The doctor was arrested on June 18 and produced before a court the next day, which granted four days of police custody for further interrogation. The ACB has also stated that the role of other officials, private individuals, and suppliers is under investigation.

Medical Dialogues had previously reported that a former head of the Central Procurement Agency (CPA) under the Directorate General of Health Services (DGHS) has been arrested in connection with the alleged corruption case involving the procurement of medicines and other items, an official said.

Following these developments, Delhi Chief Minister Rekha Gupta recommended registration of FIRs against two more doctors in the case. The matter is also being probed separately by the Directorate of Vigilance.

The Enforcement Directorate (ED) has now entered the case by registering a money laundering case under the Prevention of Money Laundering Act (PMLA). As part of its investigation, the ED's Delhi Zonal Unit-2 has asked the Delhi government's Health Department to submit documents related to procurements made by the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS). It has written to the Director General of Health Services seeking the records, reports India Today.

In a letter to Director General Health Services (DGHS) Dr Sushma Jain, the investigation agency has also sought the details of the tendering process, technical and financial evaluation, award of contracts, supply, inspection, acceptance and release of payments related to the procurements, under scanner, including transactions and dealings involving manufacturers and their authorised distributors or vendors; and other entities associated with the aforesaid procurements, reports The Indian Express.

The ED has also sought data related to companies supplying items such as portable X-ray machines, C-Arm systems, and anaesthesia workstations.

The former Director General of Health Services has been suspended in connection with the case. The investigation by multiple agencies, including the ACB, Directorate of Vigilance, and ED, is currently ongoing.

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