Delhi Medical Procurement Scam: Former CPA Head moves bail plea

Delhi: The former Head of Office of the Central Procurement Agency (CPA) under the Directorate General of Health Services (DGHS) has moved a Delhi court seeking bail in the alleged Rs 700 crore medical procurement scam, arguing that his liberty cannot be denied solely because another accused in the case is absconding. He also maintained that he followed the prescribed administrative procedures while processing procurement files.

The former official was arrested by the Delhi government's Anti-Corruption Branch (ACB) in June in connection with the alleged procurement irregularities. His bail application is scheduled to be heard on August 6.

In his application, he argued that the ongoing forensic examination of electronic devices, scrutiny of financial transactions and the investigation into the money trail are all part of the agency's investigation and do not require his continued custody. He further stated that there are no allegations that he helped the absconding accused evade investigation or attempted to influence the probe.

Medical Dialogues had earlier reported that the case relates to an alleged ₹650-700 crore medical procurement scam involving purchases made through the Central Procurement Agency for Delhi government hospitals. The ACB is investigating allegations that tender conditions were manipulated to favour selected firms and that medicines, surgical supplies and medical equipment were procured at inflated prices, allegedly causing significant losses to the public exchequer.

The bail plea moved by advocate Vijay Bishnoi on July 30 has stated, “That the prosecution in their judicial remand application sought continued detention on the grounds that forensic examination of electronic devices is pending, replies from government departments and banks are awaited, financial transactions are being scrutinised, the money trail is under investigation, and one alleged co-accused is absconding. That these are investigative processes entirely within the control of the investigating agency and do not require the continued incarceration of the applicant/ accused”, reports The Indian Express.

Defending his role, the doctor submitted that the procurement files were processed strictly in accordance with the established administrative framework. According to the plea, the Head of Office could only process files after obtaining administrative approval from the Directorate General of Health Services. At the same time, supply orders were issued through the prescribed procedure.

The application also states that procurement decisions involved multiple levels of administrative, financial and technical scrutiny, and were not controlled by any single official.

That the aforesaid procedure is the established and uniform practice followed by the Central Procurement Agency (CPA) in all procurement matters. That the procurement files relating to the present case were also processed strictly in accordance with the said standard procedure. That at no stage did the applicant/accused exercise any independent or unilateral authority outside the prescribed administrative and financial workflow,” the bail plea stated.

The alleged irregularities came to light after the Delhi government's Vigilance Department conducted raids at the CPA following complaints over its procurement practices. Investigators have alleged that tender specifications were framed to benefit selected suppliers and that fake firms were used during the procurement process. One of the accused remains absconding.

The bail plea will be heard by the Rouse Avenue Court on August 6, while the Anti-Corruption Branch is expected to file its response to the bail application.