The Rouse Avenue Court denied bail to Rajiv Rangeela in an Rs 840-crore medical supply scam, citing the need for a fair investigation and the gravity of the charges involving inflated prices for X-ray machines purchased by the DGHS.

Rouse Avenue Court Rejects Bail Plea

The Rouse Avenue Court on Wednesday refused to grant bail to Rajiv Kumar alias Rajiv Rangeela, arrested in a corruption case linked to an alleged Rs 840-crore scam involving the supply of medical goods to the Directorate General of Health Services (DGHS) of the Delhi Government at exorbitant prices. His earlier bail application was also dismissed. The court said that the continued custody of the accused was required for a fair investigation.

The case pertains to alleged irregularities in the purchase of 448 portable X-ray machines at an exorbitant price of Rs 38 lakh each, instead of Rs 14.92 lakh per machine. The Anti-Corruption Branch (ACB) has filed a charge sheet against three accused persons, including former Director General of Health Services (DGHS) Vatsala Aggarwal and Dr Vinod Kumar Ranga. Their bail applications are pending before the Delhi High Court.

Court Observations on Conduct and Investigation

Special Judge (ACB) Vidya Prakash dismissed the bail application of Rajiv Rangeela in view of the allegations, the gravity of the alleged offences, his role and the ongoing investigation involving unknown persons and entities. The court also noted that Rangeela was named in two other cases and had fled to the US. A non-bailable warrant (NBW) had also been issued against him.

After considering the overall facts and circumstances of the case, including the nature of allegations, gravity of the offences alleged, severity of punishment prescribed in the event of grant of conviction to the accused, modus operandi allegedly used in the commission of offences alleged against him and the role allegedly played by him, and the fact that investigation qua the accused, namely Rajiv Kumar alias Rajiv Rangeela and other unknown entities, firms, companies, is still going on and in view of the discussion made, the Court was of the considered view that the accused is not entitled to the concession of bail at this stage. “Consequently, the bail application is hereby dismissed and stands disposed off,” the Special Judge ordered on November 4.

The court said that the continued detention of the accused was necessary in the interests of fair and unhindered investigation and proceedings, as the investigation was still continuing and a supplementary charge sheet was required to be filed after completion of the remaining probe, including further examination of the financial trail, documentary and electronic evidence, and the role of other connected persons and entities.

Accused Conduct and Flight Risk

The court also noted the submissions of Senior Public Prosecutor (SPP) Kumar Sanjay that the conduct of the accused, as reflected in the record, was mala fide and that he had fled India for the United States on or around June 26, 2026, after failing to join the investigation. The prosecution also submitted that non-bailable warrants were issued against him on July 7, 2026, followed by the issuance of a proclamation, returnable on September 14, 2026. It argued that the conduct of the accused was another circumstance that disentitled him from being granted bail at this stage.

Details of the Alleged Corruption

It is alleged that the accused, namely Rajiv Rangeela, co-accused Vinod Kumar Ranga, and other public servants, associates, and private entities, regarding irregularities in the procurement of medicines, surgical items and other consumable equipment, in order to cause illegal gain to themselves and illegal loss to the Govt. Exchequer. The complainant alleged that Rajiv Rangeela had tied up with manufacturers of medical items, fixed the rates at which they would supply the items and decided the kickbacks to be paid in cash.

It was further alleged that fake entities and firms with fake owners were created by Rangeela. These included M/s F Med Devices, Technocrats, Raj Shree, Aashi Surgical and Pharmaceuticals, and M Sahib and Sons Pvt. Ltd. The complainant alleged that these firms were created in the names of others, while Rangeela was their actual owner and operator.

According to the investigating agency, another supplier left the bidding process midway, following which the supply order was awarded to Rangeela’s firm, M/s F-Med Devices. It was also alleged that the co-accused persons were aware that the clinics and hospitals did not have adequate infrastructure to use 448 portable X-ray machines. Despite this, they purchased the machines at Rs 38 lakh each, while Rangeela’s firm, M/s F-Med Devices, had allegedly procured them from the manufacturer, M/s Prognosys Medical Systems Pvt. Ltd., at approximately Rs 14.92 lakh each, inclusive of AI software. This was confirmed by an officer of the manufacturer, the investigation agency said. The alleged procurement irregularities caused a huge loss to the government exchequer.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)