The Delhi Government’s Anti-Corruption Branch (ACB) has arrested the former Director General of Health Services (DGHS) in connection with an alleged multi-crore procurement scam involving medicines, surgical items and medical equipment, officials said.

The arrest of Dr. Vatsala Aggarwal on Saturday (June 27, 2026) comes days after the ACB apprehended Dr. Vijay Kumar Ranga in the same case. Dr. Ranga was later remanded to four days’ police custody by a Delhi court.

According to the ACB, the case pertains to alleged large-scale financial irregularities in procurements worth several hundred crores of rupees by the Central Procurement Agency (CPA), functioning under the DGHS. The probe was initiated after the Directorate of Vigilance flagged suspicious transactions and possible procedural violations.

Investigators alleged that the procurement of portable X-ray machines, bed sheets and linen, C-arm radiological equipment, anaesthesia workstations, oral rehydration solution (ORS), surgical consumables and medicines were made at highly inflated rates through manipulated tender processes.

The ACB alleged that tailor-made specifications were framed to favour selected suppliers, excluding genuine bidders from the process, resulting in the misuse of public funds running into hundreds of crores.

Based on the complaint, the agency registered a case on June 2 under relevant provisions of the Prevention of Corruption Act and criminal conspiracy sections of the Bharatiya Nyaya Sanhita. Officials said procurement records, tender files and related documents were being scrutinised as part of the investigation.

Dr. Aggarwal was removed from the DGHS post on May 21 and placed under “awaiting posting” before being transferred to the Guru Teg Bahadur Hospital. She was subsequently suspended at the direction of Delhi Lieutenant Governor Taranjit Singh Sandhu to facilitate disciplinary proceedings.

The Delhi Government has also suspended five pharmacists and two CPA officials after an internal inquiry reportedly found serious irregularities in the procurement, storage and management of medicines at various agency stores.

The ACB said further investigation is underway to identify the role of other officials and private suppliers in the alleged scam.