The Delhi court heard arguments on Monday regarding the bail plea of Dr. Vatsala Aggarwal, the former head of the Directorate General of Health Services (DGHS), in connection to a fraud case involving medical supplies valued at Rs 700 crore. Her attorney highlighted that the chargesheet did not trace any financial transactions to Dr. Aggarwal or any accounts associated with her.
According to her submission to Special Judge Vidya Prakash at Rouse Avenue Court, the chargesheet details payments made by the Central Procurement Agency (CPA) to various supplier companies but fails to establish any direct financial link to the applicant. The CPA is responsible for supplying medicines, vaccines, and medical equipment to healthcare facilities run by the Delhi government.
The plea emphasized that the CPA exclusively managed procurement processes, including the formation of bids and evaluation procedures, and asserted that Dr. Aggarwal did not have access to the tender management portal. Furthermore, it was stated that the CPA retained physical custody of all procurement-related documents.
The case, currently under investigation by the Delhi government’s Anti-Corruption Branch (ACB), saw the filing of a chargesheet on September 16, which implicated three public officials, including Dr. Aggarwal, along with two private companies linked to the alleged fraud. The alleged mastermind of the operation, Rajiv Rangila, surrendered to authorities last week after evading capture for over two months.
Dr. Aggarwal’s bail request noted that a report from the Health Department indicated no evidence of overpricing in the procurement processes overseen by the CPA. Additionally, the chargesheet reportedly did not mention any communications or meetings between Dr. Aggarwal and Rangila or any of the implicated companies, asserting that her interactions with Dr. Ranga were strictly professional.
Moreover, the plea pointed out that searches conducted at her residence revealed no illicit cash or documents relevant to the alleged fraud, with only records related to her personal investments being confiscated. The chargesheet does not allege that these investments are inconsistent with her known income or link them to the questioned procurements. Dr. Aggarwal has been in custody since June 29, 2026.
The fraud case involves claims of extensive irregularities, including manipulated tenders and the misappropriation of public funds intended for medical supplies. These issues first emerged in May, following raids by the Vigilance department prompted by complaints regarding the CPA’s operations.
Dr. Ranga was the first individual arrested in connection with the case on June 18, shortly followed by Dr. Aggarwal. The chargesheet spans thousands of pages, supported by testimonies from 84 witnesses and a compilation of 123 documents.
The ACB is currently examining footage from CCTV cameras at the CPA office and conducting forensic analysis on 29 hard drives seized during the investigation. They are also looking into the ownership of six retail outlets in Laxmi Nagar, allegedly owned by Rangila.
