The Enforcement Directorate (ED) has initiated a probe into an alleged medical equipment scam in Delhi, reportedly involving Rs 600 crore. This action follows a case registered under the Prevention of Money Laundering Act (PMLA) due to concerns regarding health procurement practices in the region. The issue first came to light when the Directorate of Vigilance forwarded a complaint to the Anti-Corruption Branch (ACB) of the Delhi government, highlighting significant irregularities in procurement processes.

Details of the Allegations

The complaint details large-scale discrepancies in the procurement of medical supplies, including medicines, surgical items, and equipment, managed by the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS). It alleges that certain individuals, both public servants and private entities, colluded to manipulate procurement protocols, thereby favouring specific suppliers. This manipulation is claimed to have resulted in substantial financial losses for the government while private firms gained undue advantages.

Specific items such as portable X-ray machines, C-Arm radiological equipment, anaesthesia workstations, and essential consumables were allegedly purchased at inflated prices. The complaint asserts that tailored specifications were crafted to benefit selected companies, effectively sidelining genuine bidders and leading to the misuse of government funds amounting to several hundred crore rupees.

As part of the investigation, the ACB scrutinised procurement records and found that vital documentation related to the procurement process was missing. Dr Vinod Kumar Ranga, the former Head of Office of the CPA, reportedly kept these files in his personal custody, failing to provide satisfactory explanations for their absence.

Actions Taken by Authorities

On June 18, the ACB arrested Dr Vinod Kumar Ranga, seeking custodial interrogation to recover the missing documents and uncover the larger conspiracy behind the fraud. Following this, he was presented in court the next day, where he was remanded into police custody for four days. The ACB is also actively investigating the involvement of numerous other public servants, suppliers, and private individuals linked to the case.

As developments unfolded, Delhi Chief Minister Rekha Gupta called for filing First Information Reports (FIRs) against two additional doctors in connection with the alleged scam. The Directorate of Vigilance is also involved in closely examining various facets of the case.

With the ED now entering the investigation, it has formally registered a money laundering case under the PMLA. The ED’s Delhi Zonal Unit-2 has requested the Delhi government’s Health Department to provide comprehensive records regarding the procurements conducted by the CPA and DGHS. This includes documentation covering the entire procurement process, from tender submissions to payments made.

ED’s Investigation Focus

The ED has reached out to the Director General of Health Services to collect records relevant to the probe, encompassing tender documents, evaluations, contract awards, and details of transactions associated with companies involved in the supply of medical equipment. Special attention is being directed towards firms that supplied items like portable X-ray machines, C-Arm machines, and anaesthesia workstations.

This extensive investigation aims to trace the flow of funds and identify both beneficiaries and additional conspirators involved in the alleged malpractice. The ED is committed to uncovering the facts surrounding this significant case of public financial misconduct.

As the inquiry advances, authorities remain vigilant in their efforts to address any misconduct and ensure that the integrity of public health procurement processes is upheld.

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