Delhi Ex-Health Chief Arrested in Multi-Crore Procurement Fraud
The Anti-Corruption Branch has apprehended Delhiβs former Director General of Health Services, Dr. Vatsala Aggarwal, in connection with a massive medical supply procurement scandal. This high-profile arrest follows intense scrutiny into manipulated tenders, inflated pricing, and systemic corruption within the national capital’s healthcare administration.
Key Highlights
- Former DGHS chief Dr. Vatsala Aggarwal was arrested by the Anti-Corruption Branch on June 27, 2026.
- The investigation targets financial irregularities totaling hundreds of crores within the Central Procurement Agency.
- Multiple medical devices, including portable X-ray machines and anaesthesia workstations, were allegedly purchased at artificially inflated rates.
- Seven other officials, including five pharmacists, have been suspended as probe coverage widens.
The Anti-Corruption Branch (ACB) of the Delhi Government has detained Dr. Vatsala Aggarwal, formerly the Director General of Health Services (DGHS), amid an investigation into alleged procurement fraud. The arrest occurred on Saturday, June 27, 2026, following the apprehension of Dr. Vijay Kumar Ranga, another key figure implicated in the same case. Both arrests are part of a broader investigation into alleged irregularities in the acquisition of medical supplies, surgical items, and equipment, with financial implications reportedly amounting to several hundred crores of rupees.
The inquiry commenced after the Directorate of Vigilance raised concerns about questionable transactions associated with the Central Procurement Agency (CPA) operating under the DGHS. Investigators alleged that the procurement processes for items such as portable X-ray machines, surgical consumables, and anaesthesia workstations were conducted at inflated prices, resulting from artificially manipulated tender specifications designed to favour specific suppliers, thus excluding legitimate bidders.
The ACB officially registered a case on June 2 under relevant sections of the Prevention of Corruption Act and criminal conspiracy laws, citing extensive misuse of public funds. As part of the ongoing investigation, officials are currently reviewing procurement records, tender documentation, and related material.
Following Dr. Aggarwal’s removal from her position on May 21 and subsequent transfer to the Guru Teg Bahadur Hospital, she was suspended on the directive of Delhi Lieutenant Governor Taranjit Singh Sandhu. This action aimed to facilitate disciplinary proceedings related to the ongoing investigation.
In addition to Dr. Aggarwal’s suspension, the Delhi Government has suspended five pharmacists and two officials from the CPA after an internal inquiry uncovered serious procurement irregularities, including issues related to the management and storage of medicines at various agency facilities. The ACB noted that investigations are still ongoing to further clarify the involvement of additional officials and private vendors in the alleged malpractice.
Delhi Chief Minister Rekha Gupta has emphasised the importance of a transparent and timely investigation, reinforcing the governmentβs position on maintaining a zero-tolerance policy towards corruption and safeguarding public funds from misuse. The Central Government Health Scheme, which serves a large number of beneficiaries, is at the centre of this scrutiny due to the alleged financial misconduct involving its procurement processes.
Future Outlook
The widening scope of the Anti-Corruption Branch investigation signals an impending, comprehensive overhaul of Delhi’s medical supply chain management. Moving forward, the state administration is expected to enforce stringent digital auditing mechanisms and restructured oversight bodies for the Central Procurement Agency to prevent future vendor collusion.
FAQs
Who is Dr. Vatsala Aggarwal and why was she arrested?
Dr. Vatsala Aggarwal is the former Director General of Health Services (DGHS) of Delhi. She was arrested by the Anti-Corruption Branch on June 27, 2026, over her alleged involvement in a massive medical procurement scam involving hundreds of crores of rupees.
Which medical equipment items are central to the corruption probe?
The investigation focuses on the fraudulent acquisition of medical hardware and consumables. Specifically, authorities are auditing the procurement of portable X-ray machines, anaesthesia workstations, and various surgical items that were allegedly bought at inflated prices.
What actions have been taken against other government officials?
Apart from Dr. Aggarwal, the ACB previously detained Dr. Vijay Kumar Ranga. Additionally, the Delhi government has suspended two officials from the Central Procurement Agency and five pharmacists following internal discoveries of mismanagement.
How did the fraudulent procurement scheme operate?
The perpetrators allegedly manipulated tender specifications deliberately to favor predefined private vendors. This restriction blocked legitimate market competitors and enabled the purchase of medical resources at artificially heightened rates.
