New Delhi: The Anti-Corruption Branch (ACB) of the Delhi government has intensified its investigation into the alleged ₹700-crore medical procurement scam by launching a widespread search for Rajiv Rangila, a pharmaceutical trader and supplier accused of playing a central role in manipulating government tenders through a network of fake companies. Officials said Rangila has gone missing after repeatedly failing to appear for questioning, prompting authorities to conduct raids across Delhi-NCR and Uttarakhand.
According to investigators, Rangila, 50, was summoned by the ACB last week in connection with the alleged irregularities involving the Central Procurement Agency (CPA) and the Directorate General of Health Services (DGHS). Despite being served multiple notices, he did not present himself before the agency. Officials are now planning to issue a Look Out Circular (LOC) to prevent him from leaving the country while efforts continue to trace his whereabouts.
The case stems from allegations of large-scale irregularities in the procurement of medicines, vaccines and medical equipment for Delhi government hospitals. The alleged scam first came to light in May after the Delhi Vigilance Department conducted raids at CPA offices following complaints regarding procurement practices. The department subsequently lodged a complaint with the ACB, which registered an FIR on June 2.
Investigators have described Rangila as a key figure in the alleged conspiracy. The FIR accuses him of creating multiple shell companies using fictitious owners to participate in government tenders. These firms allegedly worked together to manipulate bidding processes and secure contracts at predetermined rates.
Among the companies named in the complaint are F Med Devices, Technocrats, Raj Shree, Ashi Surgical and Pharmaceuticals, and M Sahib and Sons Pvt. Ltd. While these firms were officially registered under different individuals, investigators allege that Rangila was the actual operator behind them.
According to the complaint, Rangila allegedly worked in close coordination with manufacturers of medical equipment to draft restrictive technical specifications designed to favour selected suppliers. These tailor-made tender conditions were then allegedly routed through Dr. Vinod Kumar Ranga, the Head of Office at the CPA, before being placed before the tender committee for approval.
Officials further alleged that members of the tender committees were pressured into approving these specifications, limiting fair competition and enabling selected firms to secure contracts.
The investigation has already led to several high-profile arrests. Dr. Vinod Kumar Ranga was arrested on June 18, while former DGHS chief Dr. Vatsala Aggarwal and Deputy Controller of Accounts Neeraj Chopra were arrested on June 27 for their alleged roles in approving and facilitating the irregular procurement process.
The complaint also alleges that fake companies controlled by Rangila submitted bills for supplies made to the CPA and received payments within one or two days. In contrast, payments to several legitimate medicine suppliers who had been supplying medicines to the CPA and DGHS in previous years reportedly remained pending for nearly two years.
Investigators have also identified irregularities on the Government e-Marketplace (GeM) portal. According to officials, several tenders that had already been awarded and fully paid for continued to appear as “active”, “under process”, or at the “financial bid evaluation” stage. Authorities believe this practice concealed the completion of the procurement process, preventing the public and competing bidders from knowing which firms had secured contracts and at what prices.
Officials suspect this method was deliberately used to reduce transparency and shield the alleged manipulation of tenders from scrutiny.
As the investigation gathers pace, ACB teams are contacting Rangila’s family members and associates to determine his location. Raids are continuing across multiple locations, and investigators are expected to examine financial records, procurement documents and company registrations to establish the full extent of the alleged fraud.
The case is considered one of the biggest procurement-related corruption investigations involving Delhi’s public healthcare system in recent years. Authorities have indicated that further arrests and legal action may follow as the probe progresses and additional evidence is collected.
