The Enforcement Directorate (ED) on Tuesday carried out searches at multiple locations in the national capital, including the residence of Aam Aadmi Party MLA Saurabh Bharadwaj, in connection with a money laundering case linked to an alleged health infrastructure project scam.
The raids, which began early morning, are being conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002.
Officials said the federal agency is investigating financial transactions and suspected diversion of funds allocated for the construction of the hospitals in the national capital.
"The case stems from allegations that contracts were manipulated and funds misused, causing delays and cost escalations in crucial health infrastructure construction," an officer told ANI news agency.
He said the ED action came based on a First Information Report (No. 37/2025) registered by the Anti-Corruption Branch (ACB) of the Delhi Police on June 26, 2025. The FIR was filed against two former health ministers of Delhi—Bharadwaj and Satyendra Jain—and a few government contractors and unnamed government officials.
What is Delhi hospital scam?
In 2018-19, the then AAP government led by Chief Minister Arvind Kejriwal approved projects worth Rs 5,590 crore for the construction of 24 hospitals—11 greenfield and 13 brownfield.
“These projects are mired in inexplicable delays and astronomical cost overruns, indicating large-scale financial embezzlement,” the ACB alleged in its report.
According to an NDTV report, the ICU hospital was supposed to be completed in six months, but the work remained incomplete even after three years.
Similarly, the construction of LNJP hospital also witnessed no significant progress, though its cost increased from Rs 488 crore to Rs 1,135 crore.
The ACB registered the case against Bharadwaj and Jain after receiving approval under Section 17A of the Prevention of Corruption Act from the competent authority. The FIR was based on a complaint filed by Vijender Gupta, then Leader of Opposition in the Delhi Assembly.
The ACB registered the case against Bharadwaj and Jain after receiving approval under Section 17A of the Prevention of Corruption Act from the competent authority.
The FIR was based on a complaint filed by Vijender Gupta, then Leader of Opposition in the Delhi Assembly.
A fake case
AAP on Tuesday termed the Enforcement Directorate raids against the party's Delhi unit chief Saurabh Bharadwaj a "diversionary tactic" and claimed that the case against him is false.