Delhi DGHS Procurement Scam: ED Opens Money Laundering Probe as FIR Alleges Medical Equipment Prices Were Inflated by 200%–500%
The Enforcement Directorate has launched a money laundering probe into the alleged ₹600–640 crore Delhi DGHS procurement scam after an FIR claimed medical equipment and hospital supplies were purchased at prices inflated by 200% to 500%.
The alleged ₹600–640 crore procurement scam involving Delhi’s Directorate General of Health Services (DGHS) has escalated into a multi-agency investigation, with the Enforcement Directorate (ED) registering a money laundering case under the Prevention of Money Laundering Act (PMLA). The action follows an FIR by Delhi’s Anti-Corruption Branch (ACB), which alleges that procurement prices for medical equipment, medicines, surgical consumables and hospital supplies were inflated by as much as 200% to 500%, causing substantial losses to the public exchequer.
The ED has initiated a parallel financial investigation to determine whether the alleged procurement irregularities generated “proceeds of crime” under the PMLA. Investigators have reportedly sought extensive procurement records from the Delhi government’s Health Department, including files related to tendering, bid evaluation, contract awards, payments, inspections and vendor transactions.
According to the FIR, investigators found that several medical products were allegedly purchased at prices far above prevailing market rates. The allegations indicate:
- Price inflation ranging between 200% and 500%.
- Manipulation of procurement procedures.
- Possible tailoring of tender conditions.
- Financial loss estimated between ₹600 crore and ₹640 crore.
Investigators believe these alleged practices significantly increased government expenditure on healthcare procurement while reducing value for taxpayers.
The investigation focuses on procurement carried out through the Central Procurement Agency, which is responsible for purchasing medicines, medical devices and hospital equipment for Delhi government hospitals.
The Delhi government’s vigilance action has already resulted in disciplinary proceedings against senior officials. Former DGHS chief Dr. Vatsala Aggarwal was suspended earlier this month, and recent reports state that the ACB has arrested her along with another former finance official in connection with the alleged procurement irregularities. Authorities have stated that the investigation is continuing and that further action may follow based on evidence collected.
The alleged scam has become one of the largest healthcare procurement controversies involving the Delhi government. Beyond questions of financial accountability, the case raises concerns about transparency in public procurement and the potential impact on government hospitals that rely on timely and cost-effective medical supplies.
The investigation remains at a preliminary stage. The allegations contained in the FIR are yet to be tested in court, and the accused are entitled to the presumption of innocence unless proven guilty through due process.
