The investigation into an alleged ₹700 crore medical procurement scam in Delhi has intensified, with investigators now focusing on the role of a supplier accused of manipulating government tenders. The case is linked to the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS). According to investigators, the accused allegedly created multiple shell companies to influence the procurement of medicines, surgical supplies, consumables and medical equipment, resulting in the suspected misuse of public funds.
Shell Company Networks and Collaborative Bid Manipulations
The investigation is being conducted by the Anti-Corruption Branch (ACB) of Delhi Police following a complaint alleging irregularities and financial misconduct in procurement for government health facilities in the national capital. The complaint alleged that procurement rules were bypassed, leading to significant financial losses to the public exchequer.
According to sources associated with the investigation, the accused allegedly acted as a broker and established a network of shell companies to benefit a select group of manufacturers. Investigators suspect that these entities were used to influence the tendering process, predetermine supply rates and control procurement decisions.
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Predetermined Supply Rates and Extracted Cash Kickbacks
Preliminary findings further suggest that the accused allegedly coordinated with certain manufacturers to fix supply prices and arrange cash kickbacks. Investigating agencies are now examining financial transactions, corporate records and the roles of other individuals and entities believed to be connected to the alleged network.
Sources also indicated that investigators are examining how the prescribed Government e-Marketplace (GeM) procurement procedures were allegedly bypassed and how payments to certain shell firms were processed at unusual speed. Digital records, tender documents, banking transactions and other financial evidence are currently under scrutiny.
Organized Cartel Detections and Public Treasury Accountabilities
Officials believe that if the allegations are substantiated, the case could represent a significant instance of organised manipulation within the public procurement system. The investigation aims to identify all individuals involved and determine the full extent of the alleged misuse of government funds.
The probe remains ongoing, with agencies continuing to analyse documentary, financial and digital evidence. Further legal action will be taken based on the findings of the investigation. At present, investigators have not announced any final conclusions regarding the culpability of the individuals under scrutiny.
