ED registers money laundering case in ₹600cr Delhi health procurement scam

The Enforcement Directorate (ED) has registered a money laundering case in the alleged Rs 600-crore Delhi health procurement scam. The case has been filed under the Prevention of Money Laundering Act (PMLA).

The alleged Rs 600-crore health procurement scam in Delhi first came under investigation after the Directorate of Vigilance referred a complaint to the Anti-Corruption Branch (ACB) of the Delhi government.

The complaint alleged large-scale irregularities in the procurement of medicines, surgical items, consumables and medical equipment by the Central Procurement Agency (CPA) under the Directorate General of Health Services (DGHS).

According to the complaint, some public servants and private individuals entered into a criminal conspiracy to manipulate procurement processes, tender conditions and technical specifications to favour selected suppliers. It alleged that the government suffered financial losses while private firms received undue benefits.

The complaint also alleged that portable x-ray machines, C-Arm radiological equipment, anaesthesia workstations, Oral Rehydration Solution (ORS), bed sheets, linen items, surgical consumables and medicines were purchased at highly inflated prices. It further claimed that tailor-made specifications were created to favour selected suppliers, genuine bidders were kept out of the tender process and government funds worth several hundred crore rupees were misused.

During the investigation, the ACB examined procurement records and other official documents. It found that several important files related to the procurement of portable x-ray machines, bed sheets and linen items, C-Arm radiological equipment, anaesthesia workstations, ORS, surgical consumables and medicines were not made available by Dr Vinod Kumar Ranga, the former Head of Office of the Central Procurement Agency. According to the ACB, he had kept these files in his personal custody.

The ACB said Dr Ranga failed to give satisfactory explanations about the missing records. It said his custodial interrogation was necessary to recover the missing files, uncover the larger conspiracy, identify other beneficiaries and co-conspirators, trace the money trail and recover documentary and electronic evidence.

The ACB arrested Dr Vinod Kumar Ranga on June 18. He was produced before a court on June 19, which granted four days of police custody. In a press release issued the same day, the ACB said the role of other public servants, private persons, suppliers and beneficiaries was also being investigated.

Following the developments, Delhi Chief Minister Rekha Gupta recommended registration of FIRs against two more doctors in connection with the alleged scam.

The case is also being investigated by the Directorate of Vigilance.

The Enforcement Directorate (ED) has now entered the case by registering a money laundering case under the Prevention of Money Laundering Act (PMLA).

As part of its investigation, the ED’s Delhi Zonal Unit-2 has asked the Delhi government’s Health Department to submit documents related to procurements made by the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS). It has written to the Director General of Health Services seeking the records.

The agency has sought records related to the entire procurement process, including tender documents, technical and financial evaluations, contract awards, supply of goods, inspections, approvals and payment releases.

The ED has also asked for details of transactions involving the companies, manufacturers, original equipment manufacturers (OEMs) and distributors that supplied the medical equipment and other items. It has specifically sought records related to companies that supplied portable x-ray machines, C-Arm machines and anaesthesia workstations. India Today