Delhi DGHS procurement scam: FIR reveals how medical equipment prices were allegedly inflated by up to 500%
New Delhi, June 27, 2026 (PTC Web Desk): The Delhi Directorate General of Health Services (DGHS) procurement scam has exposed alleged large-scale financial irregularities in the purchase of medical equipment and hospital supplies for Delhi government hospitals. According to an FIR registered by the Delhi Anti-Corruption Branch (ACB), the alleged scam involves procurement worth nearly Rs 600 crore, with several products reportedly purchased at prices far above their market value.
The Delhi DGHS procurement scam FIR alleges that prices of several medical items were inflated by 200 to 500 per cent, resulting in huge losses to the government exchequer. The investigation has named former Central Procurement Agency (CPA) Head of Office Dr Vinod Ranga, supplier and alleged liaisoner Rajiv Rangila, along with other officials of the Directorate General of Health Services (DGHS). Dr Ranga was arrested by the ACB on Thursday.
According to the FIR and a report published in The Tribune, the Delhi DGHS procurement scam involved manipulation of government tenders, cartelisation and the creation of fake companies to secure contracts. The complaint, filed following a Vigilance Department inquiry, alleges that government funds worth hundreds of crores were siphoned off through inflated procurement of medical equipment, medicines and hospital supplies.
The FIR alleges that Rajiv Rangila floated several fake companies, including F Med Devices, Technocrats, Raj Shree, Ashi Surgical and Pharmaceuticals and M Sahib and Sons Pvt Ltd. These firms were allegedly shown as authorised distributors of selected manufacturers to qualify for government tenders.
Investigators claim that tender specifications were drafted in a way that favoured these companies. The complaint further alleges that procurement documents were prepared in advance and approved through undue pressure on members of the tender committee.
The FIR also states that eligibility conditions were deliberately kept restrictive, preventing genuine bidders from participating. Although the tenders were uploaded on government procurement portals, work orders were allegedly issued manually while the tenders continued to appear as "active" or "under process" online, hiding details of successful bidders and awarded rates.
One of the biggest allegations relates to the procurement of 448 portable X-ray machines. The FIR claims that the initial tender was floated for only two machines, discouraging wider participation before the order was expanded to 448 units.
The complaint alleges that each machine was purchased for around Rs 33 lakh, while the same model had reportedly been supplied to other government departments for nearly Rs 10 lakh. As a result, payments of approximately Rs 148 crore were allegedly made for equipment estimated to be worth around Rs 45 crore.
The FIR also alleges major overpricing in the purchase of bed sheets, pillow covers and other linen items. Bed sheets were reportedly bought for Rs 450 each, despite similar products being supplied to institutions such as AIIMS for around Rs 150 per piece.
According to the complaint, only companies linked to the same ownership qualified for the tender, while competing bidders were rejected. Hospitals were allegedly instructed to generate additional demand to justify large-scale procurement.
The investigation also covers procurement of C-Arm radiological equipment, where seven machines were allegedly purchased at Rs 1.10 crore each, despite similar equipment reportedly being available to other government departments for nearly Rs 25 lakh per unit.
The FIR further alleges that tenders for anaesthesia workstations were designed to favour a specific manufacturer's model, with only one bidder qualifying. Officials are accused of issuing manual purchase orders while the procurement portal continued to display the tender as pending financial evaluation.
The complaint alleges that 50 lakh Oral Rehydration Solution (ORS) sachets, usually purchased for around Rs 2.50 each, were procured at Rs 15 per sachet. This reportedly increased the procurement cost from Rs 1.25 crore to Rs 7.50 crore, causing an alleged excess expenditure of Rs 6.25 crore.
Similar allegations have been made regarding surgical supplies, including dressings, sutures, cannulas and gloves. According to the FIR, products valued at Rs 20–25 crore were allegedly procured for over Rs 100 crore, leading to substantial financial losses.
The FIR further alleges that instead of using state-level open tenders, which generally secure medicines directly from manufacturers at significantly lower prices, the Central Procurement Agency relied on local chemist tenders meant only for emergency requirements.
Investigators claim that medicines and surgical items worth nearly Rs 400 crore were procured through these local tenders at much higher rates, resulting in significant losses to the Delhi Government.
The Anti-Corruption Branch is continuing its investigation into the alleged procurement irregularities. The FIR accuses officials and suppliers of manipulating tender processes, inflating prices and misusing public funds intended for Delhi government hospitals. Authorities are expected to examine procurement records, payment approvals and the role of all individuals named in the complaint before further legal action is taken.
- With inputs from agencies
