Authorities have arrested a former senior health official in Delhi in connection with a large-scale corruption case involving irregularities in the purchase of medical supplies and equipment valued at hundreds of crores of rupees.
Dr. Vatsala Aggarwal, who previously served as Director General of Health Services (DGHS), was taken into custody by investigators on Saturday. The development follows the recent detention of another official, Dr. Vijay Kumar Ranga, who was remanded to police custody for four days by a court.
The case centres on alleged financial irregularities in procurements handled by the Central Procurement Agency under the DGHS. Concerns were raised after vigilance authorities identified suspicious transactions and possible violations of established procedures. Investigators have pointed to purchases of items including portable X-ray machines, bed sheets and linen, C-arm radiological equipment, anaesthesia workstations, oral rehydration solutions, surgical consumables, and various medicines. These were reportedly acquired at significantly inflated prices through manipulated tender processes.
According to the probe, specifications for tenders were allegedly tailored to benefit particular suppliers, effectively sidelining other qualified bidders. This resulted in the alleged misuse of substantial public funds. A formal case was registered on June 2 under provisions related to corruption and criminal conspiracy. Officials are examining procurement records, tender documents, and related files as part of the ongoing inquiry.
Aggarwal was removed from her DGHS position on May 21 and placed in an “awaiting posting” status before a transfer to Guru Teg Bahadur Hospital. She was later suspended to enable disciplinary action. In a related move, the government suspended five pharmacists and two officials from the procurement agency following an internal review that uncovered serious lapses in the handling, storage, and management of medicines.
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The state government has emphasised a firm stance against corruption and administrative lapses, indicating that further action will be taken against any officials found responsible. The investigation continues to determine the involvement of additional personnel and private suppliers in the alleged irregularities.
This case has drawn attention to the need for greater transparency and accountability in public health procurement processes, where large sums are spent on essential medical resources. As inquiries proceed, details on the full extent of the financial impact and any recoveries are expected to emerge.