‘Severe damage to health system, society impacted’: Delhi Court denies bail to accused in 842-crore procurement scam

A Delhi court on Saturday denied bail to former deputy controller of accounts at the Delhi government’s Central Procurement Agency (CPA), Neeraj Chopra, a key accused in the case related to the alleged Rs 842-crore medical procurement scam.

“There is no gainsaying that the applicant/accused was holding responsible position, and his alleged acts constitute economic offences, which has not only caused severe damage to the health system of Govt. of NCT, Delhi, but has also adversely affected the society as a whole. It is trite that economic offences constitute class apart, and thus, need to be viewed differently,” said Special Judge Vidya Prakash of Rouse Avenue Court in his order.

“…if the applicant/accused is enlarged on regular bail at this stage, there is a reasonable apprehension that, having regard to his former senior official position and familiarity with the concerned officials and official records, he may influence or approach the material witnesses, interfere with the official records or other evidence and otherwise hamper the ongoing investigation,” the court added.

According to the Delhi government’s Anti-Corruption Branch (ACB), which is probing the case, Chopra was a member (finance) of the CPA’s procurement committees and bid files for the purchases in question were placed before him for approval. The ACB, represented in the court by Senior Public Prosecutor Kumar Sanjay, alleged he signed notings without objecting that the winning bidder did not meet the tender’s eligibility conditions, and that bills of all suppliers were routed through him.

In one instance, a bill from M/s F-Med Devices, a firm allegedly owned by the “mastermind” in the case, Rajiv Rangila, reached Chopra after processing. He marked it to the cashier for re-verification, after which it went to the Director General of Health Services for approval.

“The material available on record, would prima facie show that the officials who had raised objections to the questioned files, were subjected to pressure, and that one such officer was allegedly taken to the residence of co-accused Rajiv Kumar on the directions of co-accused Dr. Vinod Kumar Ranga. The apprehension of interference is, therefore, not theoretical,” the judge said in the order.

“This is more so when co accused Rajiv Kumar has only recently been arrested, and his role, communications, financial transactions and connections with the public servants and beneficiary entities are still being investigated. Therefore, release of applicant/accused, at this stage, may adversely affect such ongoing investigation,” he added.

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The case centres on the CPA, the nodal agency responsible for supplying medicines, vaccines and medical equipment to Delhi government hospitals and healthcare facilities.

The chargesheet filed in the case on September 16 alleged that tenders were manipulated to favour two companies – F-Med Devices and M Sahib and Sons Private Limited – owned by pharmaceutical trader Rajiv Rangila. The ACB has described Rangila, who has been arrested, as one of the alleged masterminds of the fraud.

The chargesheet names three public servants – Dr Ranga, Head of Office of the CPA; Directorate General of Health Services chief Dr Vatsala Aggarwal; and Chopra – along with the two companies.

The ACB also alleged that tenders were tailored to favour Rangila’s companies, their bills were cleared within a day or two while other suppliers went unpaid for two years, and that 10 important procurement files could not be traced.