The prosecution opposing Rajiv Rangila’s bail in Delhi’s alleged Rs 842-crore health procurement scam has accused him of using domestic helps as directors of shell companies, manipulating tender conditions and obstructing the investigation by withholding crucial documents. The allegations were made before a special Delhi court on Tuesday and have not been adjudicated.
Before special judge Vidya Prakash, senior additional public prosecutor Kumar Sanjay described Rangila as the alleged “kingpin” who manipulated public procurement processes in connivance with government officials and siphoned off hundreds of crores. The prosecution said Rangila created several front companies while retaining actual ownership and control of them.
According to the prosecution, seven companies were allegedly used in the arrangement. It said Rangila was the proprietor of F-Med, while directors of other firms included his domestic helps. M Sahib & Sons Pvt Ltd, for example, was allegedly held by Sunil Kumar and his father, whom the prosecution described as Rangila’s helps. The companies were said to operate from the same complex, with interconnected shops and offices allegedly controlled by Rangila.
The prosecution also referred to the suicide of one such alleged dummy director. Rangila has been named in an FIR and charged with abetment of suicide in connection with that case. The deceased man’s son allegedly told police that Rangila had fraudulently obtained his Aadhaar and other credentials and used them to make him a director in a shell company that participated in linen supply bids. The man allegedly died by suicide when police arrived at his home to conduct a raid.
The allegations also concern the way suppliers qualified for government tenders. Sanjay told the court that Rangila allegedly arranged for manufacturers to issue certificates appointing his shell companies as authorised distributors, despite the firms allegedly lacking the required experience, turnover and performance credentials. He further alleged that Rangila negotiated supply rates, arranged cash kickbacks and prepared restrictive technical specifications with manufacturers to favour his companies.
The prosecution alleged that these tender specifications were passed to co-accused Dr Vinod Kumar Ranga for presentation before tender committees. It also alleged that officials who objected to procurement files, including Radha Raman Singh, were taken to Rangila’s residence on his instructions and intimidated.
The X-ray procurement was cited as a specific example. The prosecution alleged that F-Med supplied machines costing Rs 14.9 lakh for Rs 37.8 lakh each after securing a tender for 448 machines, despite allegedly not meeting the tender conditions. It claimed the process was first conducted through the Government e-Marketplace, or GeM, but was later abandoned in a manner that allegedly favoured Rangila’s firm.
The prosecution further alleged that manual purchase orders were issued on the same day while online bids continued to show an “active” or “under process” status. Bills were allegedly issued outside the GeM portal, and hundreds of crores were allegedly transferred to shell companies after a Directorate of Vigilance and Anti-Corruption raid.
Opposing bail, the prosecution said Rangila initially absconded after the raid and the arrest of a co-accused. It also referred to an FIR containing allegations of extortion and said proceedings under Section 84 of the Bharatiya Nagarik Suraksha Sanhita were initiated before Rangila surrendered on September 24.
The prosecutor argued that Rangila remained a potential threat to the investigation because he had allegedly been non-cooperative in providing proxy and backup copies of crucial documents. The prosecution rejected the defence’s contention that the investigation was complete and that all documentary evidence was already with the Anti-Corruption Branch. The court’s consideration of the bail plea is the next procedural step in the case.
