THE INFLATED BILLS OF HEALTHCARE
Inside the ₹700-Crore Medical Procurement Scam That Shook New Delhi
In the heart of the national capital's health department, a multi-crore corruption racket has been uncovered, where public funds meant for life-saving medicines were allegedly siphoned off through a web of manipulated tenders and inflated bills. At the center of this storm is Dr. Vatsala Aggarwal, the former Director General of Health Services (DGHS) of Delhi, who was arrested in June 2026 for her alleged role in a scam that has caused a loss of hundreds of crores to the government exchequer.
1. The Anatomy of the Scam
The investigation, led by the Anti-Corruption Branch (ACB), centers on the Central Procurement Agency (CPA), which operates under the DGHS. Following a tip-off and subsequent raid by the Vigilance Department, an FIR was registered on June 2, 2026, revealing large-scale financial irregularities.
The racket operated by manipulating the entire bidding process , from framing tailor-made tender specifications to approving inflated disbursement of funds—to provide undue advantage to selected firms and shell companies.
2. Shocking Price Hikes: Market vs. Scam Rates
The most glaring evidence of the fraud lies in the comparison between actual market prices and the rates the government was forced to pay:
Portable X-Ray Machines: Procured for ₹33 lakh each, while the market price was approximately ₹10 lakh.
Oral Rehydration Salts (ORS): Sachets with a market price of ₹2.05 were bought for ₹15—a nearly 600% markup.
Hospital Bed Sheets: Procured for ₹450 each against a market cost of ₹150.
C-Arm Radiological Equipment: Purchased for ₹1.1 crore each, despite a market value of roughly ₹25 lakh.
Surgical Supplies: Supplies estimated to be worth ₹20–₹25 crore were allegedly billed for nearly ₹100 crore
3. The Fall of the DGHS
Dr. Vatsala Aggarwal, who had been appointed as Delhi's DGHS in August 2023, was removed from her post on May 21, 2026, as irregularities surfaced. She was subsequently suspended on the direction of Delhi Lieutenant Governor Taranjit Singh Sandhu and arrested on June 27, 2026.
Investigators allege she approved critical procurement proposals at different levels despite knowing they involved highly inflated rates and procedural violations.
4. A Network of Corruption
The arrest of Dr. Aggarwal is part of a broader crackdown on a syndicate that includes several high-ranking officials and private contractors:
Dr. Vijay Kumar Ranga: Former Head of Office at the CPA, arrested on June 18, 2026.
Neeraj Chopra: Former Deputy Controller of Accounts at the CPA, arrested alongside Dr. Aggarwal on June 28, 2026.
Suspensions: Five pharmacists and two other CPA officials have been suspended for their involvement in the management of these medical stores.
The Missing Contractor: Rajiv Rangila, a main contractor with decades of experience in medical tendering, is currently missing and suspected of fleeing the country. A Look Out Circular (LOC) has been issued for him.
Investigation and Political Fallout
The scam, estimated at ₹700 crore, has sparked a major political battle in Delhi. The Enforcement Directorate (ED) is now investigating the money trail to identify who ultimately benefited from the siphoned funds.
🚨 Current Status
Dr. Aggarwal, Dr. Ranga, and Neeraj Chopra remain in judicial custody as the ACB scrutinizes thousands of tender files and procurement records. The investigation is now looking into the potential role of certain IAS officers, as authorities believe the scam could not have continued for months without high-level administrative support.
- Parikshit Sachdeva