Former Delhi DGHS chief arrested in multi-crore medical procurement scam
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New Delhi: 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.
The arrest of Dr Vatsala Aggarwal comes days after the Anti-Corruption Branch (ACB) arrested another accused in the same case. The accused was later remanded to four days' police custody by a Delhi court.
According to the ACB, the case pertains to alleged large-scale financial irregularities in procurements worth several hundred crores of rupees by the Central Procurement Agency (CPA), functioning under the DGHS. The probe was initiated after the Directorate of Vigilance flagged suspicious transactions and possible procedural violations, news agency PTI reported.
According to investigators, procurements of portable X-ray machines, bed sheets and linen, C-arm radiological equipment, anaesthesia workstations, oral rehydration solution (ORS), surgical consumables and medicines were allegedly made at highly inflated rates through manipulated tender processes.
The ACB further alleged that tailor-made specifications were framed to favour selected suppliers, thereby excluding genuine bidders from the process and resulting in the misuse of public funds running into hundreds of crores.
Based on the complaint, a case was registered on June 2 under relevant provisions of the Prevention of Corruption Act and criminal conspiracy sections of the Bharatiya Nyaya Sanhita. Officials said procurement records, tender files and related documents were being scrutinised as part of the investigation.
She was removed from the DGHS post on May 21 and placed under "awaiting posting" 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.
Medical Dialogues had earlier reported that, as per an office order issued on June 1, 2026, the then Director of Health Services (DHS) has been directed to report to the Medical Director of GTB Hospital for further duties and assignment of work.
Earlier in the day, the Delhi government also suspended five pharmacists and two CPA officials after an internal inquiry reportedly found serious irregularities in the procurement, storage and management of medicines at various agency stores.
Chief Minister Rekha Gupta said her government follows a zero-tolerance policy towards corruption and administrative negligence, and warned of strict action against any official found guilty of wrongdoing.
The chief minister had earlier sanctioned a corruption probe against her and other Health Department officials under Section 17A of the Prevention of Corruption Act.
The ACB said further investigation is underway to identify the role of other officials and private suppliers in the alleged scam.
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