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The Enforcement Directorate (ED) has initiated a money laundering investigation into an alleged health procurement scam involving an estimated Rs 600–650 crore and has sought extensive records from the Delhi Government’s Health Department as part of its ongoing probe, sources said on Thursday.
The investigation has been launched under the provisions of the Prevention of Money Laundering Act (PMLA) and is focused on allegations of irregularities in the procurement of medical equipment and supplies, including claims of manipulated tendering processes and artificially inflated pricing.
As part of the enquiry, the ED has formally sought information and documents from the Health Department during the course of its ongoing investigation under the anti-money laundering law. Officials are examining whether financial irregularities occurred during the purchase of various medical items and whether any proceeds of crime were generated through the procurement process.
According to sources, the ED’s Delhi Zone-2 unit has written to the Director General of Health Services (DGHS), Government of Delhi, seeking records related to procurements undertaken by the Central Procurement Agency (CPA) as well as the DGHS.
Among the items under examination are portable X-ray machines, C-arm radiological equipment, anaesthesia workstations, Oral Rehydration Salts (ORS), bedsheets, linen, surgical consumables, dressings, sutures, cannulas, gloves and medicines.
Officials said the agency has also requested documents connected to every stage of the procurement process. These include records relating to the issuance of tenders, technical and financial evaluations of bids, contract award procedures, supply and delivery of goods, inspections, approvals and the release of payments made to vendors.
The ED has also sought details of financial transactions involving the companies, manufacturers, original equipment manufacturers (OEMs) and distributors associated with the supply of the medical equipment and materials purchased by the department.
The agency has specifically asked for records linked to firms involved in the manufacture and supply of equipment such as portable X-ray machines, C-arm machines and anaesthesia workstations, among other items being examined as part of the investigation.
Through the ongoing probe, the Enforcement Directorate is seeking to establish whether any irregularities were committed during the procurement process and whether there was any financial misconduct, undue benefit, overpricing or diversion of funds. Investigators are also examining whether any aspect of the transactions could attract provisions related to money laundering under the PMLA.
Investigation is underway, and further details are awaited.