New Delhi | The investigation into the alleged ₹600-crore health procurement scam involving the purchase of medicines, medical equipment, and essential supplies for government hospitals and healthcare institutions in Delhi has entered a new phase. The Enforcement Directorate (ED) has registered a case under the Prevention of Money Laundering Act (PMLA) and initiated a probe into the alleged financial irregularities, focusing on the money trail, beneficiaries, and the role of companies linked to the procurement process.
The case stems from a complaint alleging large-scale irregularities in procurement activities carried out under the Health Department. According to the complaint, certain public servants and private entities allegedly conspired to manipulate procurement procedures, tender conditions, and technical specifications in a manner that favoured select suppliers. It is alleged that these actions caused significant financial losses to the government while providing undue benefits to private firms.
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The investigation covers the procurement of portable X-ray machines, C-Arm radiological equipment, anesthesia workstations, Oral Rehydration Solution (ORS), bed sheets, linen items, surgical consumables, and various medicines. The complaint alleges that several of these items were purchased at highly inflated prices compared to prevailing market rates. It further claims that tailor-made tender specifications were designed to restrict competition, effectively excluding genuine bidders from the procurement process.
During the preliminary inquiry, investigators examined procurement records and related official documents. According to the findings, several crucial files linked to the purchases were not made available for scrutiny. Investigators have alleged that these records remained in the personal custody of Dr. Vinod Kumar Ranga, the former Head of Office of the Central Procurement Agency. Authorities claim that satisfactory explanations regarding the missing documents were not provided when the records were sought.
Dr. Vinod Kumar Ranga was arrested on June 18 as part of the investigation. Officials maintain that his interrogation is essential to recover the missing records, uncover the full extent of the alleged conspiracy, identify additional suspects, and trace the movement of funds. Investigators are also examining who ultimately benefited from the alleged irregularities and through what channels the money may have been transferred.
The role of other individuals and suppliers associated with the procurement process is also under scrutiny. Sources indicate that investigators are reviewing contracts, pricing decisions, procurement approvals, and payment records in detail. Authorities are attempting to determine whether the tender process was systematically influenced to benefit a particular group of vendors.
Following the registration of the money laundering case, the ED has sought extensive records from the Health Department. The agency has requested documents related to the entire procurement cycle, including tender records, technical and financial evaluations, contract awards, supply details, inspection reports, approvals, and payment releases.
In addition, the ED has sought financial and transactional details of companies, manufacturers, original equipment manufacturers (OEMs), and distributors that supplied medical equipment and other materials. Particular attention is being given to entities involved in supplying portable X-ray machines, C-Arm machines, and anaesthesia workstations.
Experts believe that if the allegations are substantiated, the case could emerge as one of the largest procurement scandals involving Delhi’s public healthcare system. Investigative agencies are currently examining documents, banking records, digital evidence, and financial transactions to establish the extent of the alleged wrongdoing. Further arrests, interrogations, and asset-related investigations are not being ruled out as the probe progresses.
