India, June 28 -- Probe alleges cartel inflated medical purchases, causing massive losses to exchequer.

A First Information Report (FIR) registered by the Delhi Anti-Corruption Branch (ACB) has uncovered what investigators describe as a sophisticated procurement racket within the Directorate General of Health Services (DGHS), involving the alleged purchase of medical equipment, medicines and hospital supplies at prices inflated by up to 500 per cent. The alleged irregularities are estimated to have caused a loss of nearly Rs.600 crore to the Delhi government.

The FIR, filed on the basis of a complaint forwarded by the Delhi Vigilance Department and accessed by The Sunday Guardian, alleges the existence of an organised cartel that manipu...