Rs 10 lakh X-ray machine billed at Rs 33 lakh: ACB alleges rigged tenders, hidden work orders
New Delhi: A portable X-ray machine worth around Rs 10 lakh was allegedly billed to the Delhi government for Rs 33 lakh, one of several glaring irregularities uncovered by the Anti-Corruption Branch (ACB) in an alleged Rs 600 crore medical procurement scam involving the capital's health department.
The ACB alleges that senior health officials, in collusion with private brokers and suppliers, manipulated government tenders, inflated prices of medicines and medical equipment, and used shell companies to corner contracts, causing massive losses to the state exchequer.
Three former officials, D Vinod Kumar Ranga, former Head of Office of the Central Procurement Agency (CPA); Dr Vatsala Agrawal, former Director General of Health Services (DGHS); and Neeraj Chopra, former Deputy Controller of Accounts, have been arrested.
An FIR was registered against them on June 2 under the Prevention of Corruption Act and provisions of the Bharatiya Nyaya Sanhita relating to criminal conspiracy.
According to the investigation, private broker Rajeev Rangila allegedly orchestrated the network by floating shell companies, preparing tailor-made tender specifications and coordinating with manufacturers to ensure only selected firms qualified for contracts.
The ACB claims restrictive eligibility criteria were deliberately inserted to eliminate genuine bidders, while technical evaluations were manipulated to favour pre-selected companies.
Investigators say procurement records were also concealed from public view. Although contracts were allegedly awarded and payments released, the corresponding tenders continued to appear as ‘active’; on the Government e-Marketplace (GeM) and e-procurement portals, preventing competitors and the public from tracking the purchases.
The probe has identified several instances of alleged overpricing. Besides the portable X-ray machines, hospital bedsheets that normally cost around Rs 150 were allegedly purchased for Rs 450 each, while ORS packets worth Rs 2.50 were procured for Rs 15 apiece.
The ACB has also flagged purchases of C-Arm radiological equipment and anaesthesia workstations at prices several times higher than prevailing market rates.
Investigators further allege that procurement rules were repeatedly bypassed. Instead of relying on competitive state-level tenders for medicines, the Central Procurement Agency allegedly used local chemist contracts, meant only for emergency purchases, to procure nearly Rs 400 crore worth of medicines and surgical supplies at inflated prices.
The alleged scam surfaced after the Directorate of Vigilance conducted a raid on procurement offices in May following a tip-off and seized records relating to medicines, medical equipment and hospital supplies.
The case was subsequently handed over to the ACB. Officials said forensic scrutiny of contracts, payments and procurement records is underway, with more suppliers and officials under investigation.
The agency will also compare the prices paid by the Delhi government with rates at which the same products were supplied to other government institutions.
The allegations have sparked a political row between the BJP, Aam Aadmi Party, and Congress.
While the Congress has sought a CBI probe, AAP leader Saurabh Bharadwaj has cited the ACB FIR to question appointments made in the health department.
Delhi Health Minister Pankaj Singh said the government has ‘zero tolerance’ for corruption and promised action based on the findings of the investigation.
According to the ACB, over Rs 600 crore has already been paid under the questioned procurements, though investigators say the final scale of the alleged financial loss will be established after a detailed audit.