“Without proceeding further in Government E-marketplace (a digital platform for procurement of goods & services), the accused gave individual agreements. All the hospitals got their purchases through the Central Procurement Agency (CPA).”   CPA is the nodal agency responsible for procuring and supplying medicines, vaccines and medical equipment to Delhi government hospitals and healthcare facilities.

The case pertains to an alleged medical procurement fraud within Delhi’s health department. Former Director General of Health Services (DGHS) Dr Vatsala Aggarwal, former CPA Deputy Controller of Accounts Neeraj Chopra and Dr Vinod Kumar Ranga, former Head of Office CPA, have so far been arrested by the ACB in the case.

The case began with a Vigilance Department complaint that was converted into an FIR on June 2, and revolves around alleged widespread irregularities, manipulated tenders, and the siphoning of public funds meant for medicines, surgical items, and hospital equipment.

“They (the accused) went to GeM after the tender was floated… They selected firms of their preference and prepared a supply order in a physical form. All the files are missing, only the payment orders are there,” the ACB submitted in the court.

“The decisions were taken in a collective manner. Every decision was taken by Dr Vatsala Aggarwal. Bids of tenders had been pending since 2024 as well,” it added.

The agency also told the court, “The decisions were taken in a collective manner. Every decision was taken by Dr Vatsala Aggarwal. Bids of tenders had been pending since 2024 as well.”

The agency sought to extend the judicial custody of all three arrested accused by 14 days. It submitted that the role of other public servants, private individuals and beneficiary firms in the conspiracy of the offence was under investigation. It also submitted that crucial documentary evidence was yet to be collected and the Investigating Officer in the case was in the process of analysing electronic evidence, examining witnesses and verifying the money trail.

Allowing the custody request, Special Judge Dheeraj Mor of Rouse Avenue Court, said, “Considering the grounds mentioned in the application and having regard to the facts and circumstances of the present case including seriousness of the allegations, all three accused are remanded to Judicial Custody and they will be produced on July 20,” he said.

Rajiv Rangila, a key accused who the ACB said was a medicine supplier and pharmaceutical trader, is still absconding. The ACB also told the court that he had multiple cases against him.  “We searched eight places including a small Lakshmi Nagar shop. We conducted raids on July 2. His house was locked. He has multiple properties including a farmhouse in Karnal and one property in Rishikesh,” the ACB said.The court also issued a non-bailable warrant against Rangila.

During the hearing, Dr Aggarwal, who was seemingly in tears, told the Judge, “In all those files which came to me, I just signed them. All were L1 drawn with proper justifications. I’ve got 30 more departments besides CPA. After the file is signed by me, it is sent back. In no way, I have flouted any rules. I’m ready to help with the investigation. I may not be sent to jail,” she said.

L1 refers to the bidder who has submitted the lowest responsive price after successfully clearing all technical and eligibility checks.

Ranga who was also present in court said : “All the rules and regulations were followed. The files were vanished in my absence.”