‘Rs 14.9-lakh X-Ray machine bought for Rs 37.8 lakh, 10 key procurement files missing’

These are among the allegations the Anti-Corruption Branch (ACB) has mentioned in its chargesheet into the alleged Delhi government medical procurement scam, pegging the wrongful loss to the public exchequer at Rs 842 crore. The court has taken cognizance of the chargesheet.

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

Filed on September 16, the chargesheet 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 (50). 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 Vinod Kumar Ranga, Head of Office of the CPA; Directorate General of Health Services (DGHS) chief Dr Vatsala Aggarwal; and former CPA Deputy Controller of Accounts Neeraj Chopra – along with the two companies.

The ACB 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.

In the X-Ray machine deal, the chargesheet said, F-Med received an order for 448 machines after a bid for just two was uploaded on the Government e-Marketplace (GeM) portal – a digital platform for procurement of goods and services by Central, state ministries and departments.

While the CPA allegedly gave an order to F-Med for 448 X-Ray machines, a bid for two machines was uploaded on GeM portal “so that only few would take interest whereas it was… decided that hundreds of machines would be procured”.

Story continues below this ad

Rangila allegedly tied up with manufacturing firm Prognosis and got F-Med Devices declared as its distributor.

While Prognosis sold X-Ray machines to other departments and entities for Rs 14.9 lakh (including taxes), the same were allegedly sold to CPA for Rs 37.8 lakh (with taxes) each. F-Med was the only firm that qualified for the bid.

The ACB alleged that Rangila earned over Rs 150 crore from X-Ray machines worth over Rs 50 crore.

The pattern, the ACB added, repeated across items.

For bedsheets, covers and linen items, a payment of Rs 75 crore was made for materials worth Rs 25 crore. For 50 lakh oral rehydration solution (ORS) sachets, a payment of Rs 7.5 crore was made for items worth Rs 1.25 crore. For surgical items worth Rs 20-25 crore, around Rs 100 crore was paid.

Story continues below this ad

In terms of medicines, the alleged kickbacks received by Rangila amounted to Rs 300 crore. The money was allegedly distributed among officers of DGHS and CPA.

“Fake companies by Rangila submitted bills… to the CPA and payment was released in one or two days,” the chargesheet said.

Alleging that tenders were given to “pre-decided” companies, the Anti-Corruption Branch said the tenders were made with “tailor-made conditions in connivance with manufacturing company”.

“Tender documents forcibly approved by tender committee using threats of action against them if they resisted signing them,” it added.

Story continues below this ad

Turnover, experience and performance criteria were “kept exorbitantly high to discourage others from participating”, the chargesheet said.

Further, it added that Rangila’s firms, which didn’t meet the criteria, were “qualified in the tender”. The firms were created in others’ names, but their alleged owner was Rangila.

“Manipulation” was done on the GeM portal to “show to public and other suppliers that the tender was still in process”, the chargesheet said. This way, the public and other companies didn’t come to know whether the tender floated by the CPA had been finalised or not, it added.

The accused “colluded with each other and left the bid process on Government e-Marketplace  midway intentionally to issue supply orders to… accomplice firms… to embezzle government funds”, the chargesheet said.

Story continues below this ad

Maintaining that there was “repeated invocation of urgency and deviations from standard procurement channels ”, the chargesheet claimed that this indicated “cartelisation to siphon off government funds”.

Further, 10 missing files have emerged as a key concern for the ACB.

In its submission before Special Judge Vidya Prakash at Rouse Avenue court, Senior Public Prosecutor Kumar Sanjay — representing ACB — said the missing files “contained details of entities which raised demands, officers who initiated the procurement process, members of teams/committees involved in formulation of bid documents and specifications, and members involved in technical and financial evaluation…”

“…thus, their non-availability has deprived the investigating agency of primary documentary material concerning the manner in which the questioned tenders were processed,” he added.

Story continues below this ad

According to the chargesheet, Dr Ranga was “central to the processing of tender proposals and specifications” and also allegedly wilfully destroyed evidence. It alleged that Dr Aggarwal was the “custodian of all funds allocated to CPA” and “illegally awarded supply orders to companies leaving the GeM portal midway the bid process”.

The alleged irregularities first came to light in May, when the Vigilance department conducted raids at CPA offices following complaints. Dr Ranga was arrested on June 18, followed by Dr Aggarwal.

Spanning thousands of pages, the chargesheet relied on 84 prosecution witnesses and listed 123 documents.