ED probes ₹600 crore Delhi health procurement scam under PMLA
Synopsis
The Enforcement Directorate has opened a PMLA case into what sources describe as a ₹600–650 crore health procurement scam in Delhi, seeking tender records, payment trails, and supplier details spanning portable X-ray machines to surgical sutures. The probe marks a significant escalation in federal scrutiny of Delhi's public health spending.
Key Takeaways
The Enforcement Directorate (ED) has launched a PMLA money laundering probe into an alleged ₹600–650 crore health procurement scam in Delhi .
The ED's Delhi Zone-2 unit has written to the Director General of Health Services (DGHS) seeking procurement records from the Central Procurement Agency (CPA) .
Items under scrutiny include portable X-ray machines , C-arm equipment , anaesthesia workstations , ORS, linen, and surgical consumables.
The agency is probing alleged manipulated tendering , inflated pricing , and possible diversion of funds .
Documents sought cover the full procurement chain: tenders, bid evaluations, contracts, deliveries, inspections, and vendor payments.
The Enforcement Directorate (ED) has launched a money laundering investigation into an alleged health procurement scam involving an estimated ₹600–650 crore in the Delhi Government's Health Department, sources said on Thursday, 25 June. The probe, registered under the Prevention of Money Laundering Act (PMLA), centres on alleged irregularities in the purchase of medical equipment and supplies, including claims of manipulated tendering and artificially inflated pricing.
What Triggered the Investigation
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 carried out by the Central Procurement Agency (CPA) and the DGHS. The agency is examining whether financial misconduct occurred during the purchase of various medical items and whether any proceeds of crime were generated through the procurement process.
Items Under the Scanner
The investigation covers a wide range of medical equipment and consumables, including portable X-ray machines, C-arm radiological equipment, anaesthesia workstations, Oral Rehydration Salts (ORS), bedsheets, linen, surgical consumables, dressings, sutures, cannulas, gloves, and medicines. The ED has specifically sought records linked to firms involved in the manufacture and supply of these items, including details of original equipment manufacturers (OEMs) and distributors.
Scope of Documents Sought
Officials said the agency has requested documents covering every stage of the procurement chain — from tender issuance and technical and financial evaluation of bids, to contract awards, supply and delivery of goods, inspections, approvals, and payment releases to vendors. Financial transaction records involving companies, manufacturers, and distributors associated with the procurements have also been sought.
What Investigators Are Looking For
Through the ongoing probe, the ED is seeking to establish whether irregularities were committed during the procurement process and whether there was overpricing, undue benefit, or diversion of funds. Investigators are also examining whether any aspect of the transactions could attract PMLA provisions related to money laundering. Notably, this probe adds to a series of ED investigations into Delhi government departments in recent years, reflecting a broader pattern of scrutiny over public procurement practices in the capital.
The investigation is ongoing, and further developments are awaited.
Point of View
Including asset attachment and arrest powers. The breadth of items under scrutiny, from X-ray machines to surgical sutures, suggests investigators believe the alleged overpricing was systemic rather than isolated. What mainstream coverage may underplay is that public health procurement in India has long been a weak-oversight zone: decentralised purchasing, opaque vendor empanelment, and post-supply inspection gaps create structural conditions for inflated billing. Whether the ED can establish a traceable 'proceeds of crime' trail — the legal threshold under PMLA — will determine if this probe results in substantive action or stalls at the document-gathering stage.
NationPress
25 Jun 2026
Frequently Asked Questions
What is the Delhi health procurement scam being probed by the ED?
It is an alleged financial irregularity in the procurement of medical equipment and supplies by the Delhi Government's Health Department, estimated at ₹600–650 crore. The ED has registered a case under the Prevention of Money Laundering Act (PMLA), citing claims of manipulated tendering and artificially inflated pricing.
Which agency is conducting the investigation and under what law?
The Enforcement Directorate's Delhi Zone-2 unit is conducting the probe under the Prevention of Money Laundering Act (PMLA). The agency has written to the Director General of Health Services (DGHS) seeking extensive procurement records.
What medical items are under scrutiny in the ED probe?
The investigation covers portable X-ray machines, C-arm radiological equipment, anaesthesia workstations, Oral Rehydration Salts (ORS), bedsheets, linen, surgical consumables, dressings, sutures, cannulas, gloves, and medicines procured by the Delhi Health Department.
What documents has the ED sought from the Delhi Health Department?
The ED has sought records covering the full procurement chain, including tender issuance, technical and financial bid evaluations, contract awards, supply and delivery records, inspection reports, payment approvals, and financial transaction details of vendors, manufacturers, OEMs, and distributors.
What could happen if the ED finds evidence of money laundering?
If the ED establishes a traceable 'proceeds of crime' trail under PMLA, it can attach assets, summon individuals for questioning, and potentially make arrests. The investigation is ongoing and further details are awaited, according to sources.
