New Delhi: The Delhi Government has introduced a major change in the procurement of medicines and medical equipment for its hospitals following an alleged multi-crore procurement scam. As an interim measure, the Health Department has suspended the centralised procurement system, allowing individual government hospitals to directly purchase medicines, surgical supplies, medical equipment and other essential healthcare commodities. The decision comes as the Anti-Corruption Branch (ACB) continues its investigation into alleged irregularities in procurements made through the Central Procurement Agency (CPA).
The investigation relates to allegations that medical supplies, including bed sheets, linen items, Oral Rehydration Salts (ORS) and other healthcare materials, were procured for government hospitals at allegedly inflated prices. The ACB registered an FIR in the case and subsequently arrested former CPA Head of Office Dr. Vinod Kumar Ranga, former Director General of Health Services Dr. Vatsala Aggarwal and former CPA Deputy Controller of Accounts Neeraj Chopra. The investigation is still underway, and the allegations will be subject to judicial scrutiny before any final determination is made.
According to the Health Department’s order issued on August 6, the proposal was first referred to the Finance Department to ensure the uninterrupted availability of medicines and other essential healthcare supplies. The Finance Department observed that procurement had been centralised in June 2025 and noted that any significant policy change must be placed before the Council of Ministers. Pending a final policy decision, both departments agreed to implement an interim procurement mechanism.
Under the revised arrangement, all pending and incomplete tenders initiated by the Central Procurement Agency have been cancelled with immediate effect. Procurement requests submitted by hospitals will now be returned to the respective institutions, enabling them to initiate purchases independently in accordance with applicable government procurement rules. The move is intended to prevent disruptions in the supply of medicines and medical equipment to patients.
The Health Department has also clarified that existing rate contracts and procurement agreements already in force will continue until their expiry or termination. However, these contracts will undergo legal and procedural review, and appropriate action will be taken if any irregularities or violations are identified during the examination.
The order further states that most procurement activities through the Central Procurement Agency have been suspended for the time being. Only procurement related to essential medicines will continue under a limited arrangement. Until the CPA finalises new rate contracts for these medicines, individual government hospitals will procure both Essential Drug List (EDL) medicines and non-EDL medicines through their respective Heads of Department, following prescribed financial and administrative procedures. Similarly, hospitals will independently procure surgical supplies, consumables, medical equipment and other healthcare commodities.
The Health Department has directed all government hospitals to strictly comply with existing procurement regulations while undertaking purchases. Officials said the interim arrangement will remain in force until a comprehensive legal, financial, administrative and digital framework is established for a restructured centralised procurement system. The primary objective is to ensure that patient care and the availability of medicines and medical equipment remain unaffected while the investigation continues.
Experts believe the interim decentralisation is aimed at strengthening administrative accountability and ensuring uninterrupted healthcare services. However, they also note that any future centralised procurement framework will require stronger transparency measures, technology-driven monitoring and robust oversight mechanisms to prevent similar allegations. Meanwhile, the ACB continues to examine financial transactions, tender procedures and the roles of the individuals involved in the alleged procurement irregularities. The Delhi Government has indicated that further administrative and legal action may follow depending on the findings of the ongoing investigation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
