DGHS scam probe gains momentum as ED, ACB team up
The Enforcement Directorate (ED) and Delhi’s Anti-Corruption Branch (ACB) are now working together to track down suspect firms and money trails in the large-scale scam involving the Directorate General of Health Services (DGHS).
After the ACB arrested former DGHS chief Dr Vatsala Agarwal on Saturday, the ED also requested detailed records from the DGHS under the Prevention of Money Laundering Act (PMLA). Officials said the agency is now reviewing financial transactions related to the Central Procurement Agency (CPA) to find out who benefited and to trace the flow of suspected illegal funds.
Dr Agarwal was removed from her position on May 21 and later suspended by order of Lieutenant Governor Taranjit Singh Sandhu. She was arrested for allegedly being involved in major financial irregularities in the purchase of medicines, surgical supplies, and medical equipment worth about `350 crore. With her arrest, the ACB has now taken three people into custody in this case. Earlier, the ACB arrested Dr Vijay Kumar Ranga, who was in charge of the CPA, and he was remanded to four days of police custody by a Delhi court. Reports also say that Deputy Controller of Accounts Neeraj Chopra has been arrested in the same case.
The ACB says the investigation focuses on claims that CPA officials altered technical specifications and tender conditions to benefit certain private suppliers. Investigators believe that items such as portable X-ray machines, C-arm radiological equipment, anaesthesia workstations, oral rehydration solution (ORS), bed sheets, linen, and surgical consumables such as dressings, sutures, cannulas, gloves, and medicines were bought at higher prices, resulting in losses for the public.
Earlier, the Directorate of Vigilance, GNCTD, reported major irregularities in the CPA’s operations. This led the ACB to file a case under the Prevention of Corruption Act. The agency is now reviewing procurement files, financial transactions, and potential collusion between government officials and private vendors.
With the ED joining the investigation, the focus has expanded from just corruption to possible money laundering as well. On Friday, the agency asked the current DGHS for full records of tenders, technical and financial evaluations, contract awards, supplies, inspections, payments, and dealings with manufacturers, authorised distributors, and other groups involved in the flagged procurements.
Officials said the ED is mainly looking for ‘suspect firms’ that may have benefited from the manipulated processes and is tracing where the money went. By working together, the agencies hope to investigate not just the arrested officials but also private suppliers and anyone else who may have received improper benefits. The case has also put a spotlight on how the CPA, which handles the purchase of medicines and equipment for Delhi government hospitals, operates. Dr Agarwal had already been removed and suspended before her arrest, after complaints about irregularities.
The Government follows a “zero-tolerance” policy towards corruption, and every effort will be made to ensure a fair, transparent and time-bound investigation. The ACB is continuing its investigation into the role of other officials, while the ED is expected to register a parallel case under PMLA if evidence of money laundering emerges.
Both agencies are working together to identify everyone who benefited and recover any funds from the alleged scam. As the investigation continues, more arrests or legal actions may happen.
