NEW DELHI: A chargesheet filed by the Anti-Corruption Branch (ACB) in the alleged Delhi medical procurement scam details how tenders were manipulated to favour two pharmaceutical companies, causing an estimated loss of Rs 842 crore to the government.
It names three public servants—Dr Vinod Kumar Ranga, Head of Office of the Central Procurement Agency (CPA); Directorate General of Health Services (DGHS) chief Dr Vatsala Aggarwal; and former CPA Deputy Controller of Accounts Neeraj Chopra—along with two companies, F-Med Devices and M Sahib and Sons Private Limited. Both firms are allegedly owned by pharma trader Rajiv Rangila, arrested as one of the alleged masterminds of the fraud.
The ACB alleged that tender conditions were tailored to favour the selected firms and discourage competing bidders. Their bills were cleared within a day or two, while other suppliers reportedly waited nearly two years for payment.
The alleged manipulation was particularly evident in the procurement of X-ray machines. Although the CPA planned to procure 448 machines, the chargesheet said, a tender for just two was uploaded on the Government e-Marketplace (GeM) portal, allegedly to restrict competition.
ACB probe says firms linked to Rangila got CPA contracts via rigged tenders
The ACB probe into the medical procurement scam found an arrangement between the CPA’s Head of Office and manufacturing firm Prognosis. While Prognosis supplied the same machines to other government departments and entities at `14.9 lakh each, inclusive of taxes, F-Med charged the CPA `37.8 lakh per machine.
F-Med was the only company to qualify for the tender, the ACB claimed, alleging that the CPA official earned over `150 crore via X-ray machine transactions. Similar pricing irregularities were allegedly found in hospital linen, medicines, oral rehydration solution (ORS) sachets and surgical equipment.
The CPA paid around `75 crore for bedsheets, covers and linen worth `25 crore; `7.5 crore for 50 lakh ORS sachets valued at about `1.25 crore; and nearly `100 crore for surgical items worth `20-25 crore, according to the chargesheet. In procurement, the alleged kickbacks received by the CPA’s Head of Office amounted to `300 crore, which was reportedly distributed among DGHS and CPA officials.
“Fake companies by the accused pharmaceutical trader submitted bills… to the CPA and payment was released in one or two days,” the chargesheet said. The ACB alleged that contracts went to “pre-decided” companies through “tailor-made conditions in connivance with manufacturing company”. Tender committee members were allegedly threatened with action if they refused to approve and sign the documents.
Eligibility criteria relating to turnover, experience and past performance were kept exceptionally high to exclude competing suppliers, the agency claimed. Despite allegedly failing to meet these requirements, companies linked to Rangila were subsequently qualified. Some firms were registered in other individuals’ names.