The Enforcement Directorate (ED) on Tuesday, August 26, 2025, conducted searches at 13 locations in Delhi-NCR, including the residence of former Delhi Health Minister and Aam Aadmi Party (AAP) leader Saurabh Bhardwaj, in connection with the alleged hospital construction scam, agency sources said.
The action, carried out under the Prevention of Money Laundering Act (PMLA), stems from a case registered by Delhi’s Anti-Corruption Branch (ACB) in June 2025 against former Health Ministers, private contractors, and unidentified government officials.
According to investigators, the projects were marred by:
- Large-scale corruption and fund diversion
- Unjustified cost escalations
- Unauthorised constructions
- Misappropriation of public money
Sources said the ED teams searched Bhardwaj’s residence along with offices and homes of contractors, looking for evidence of fund siphoning and laundering.
The ACB probe was initiated after the Ministry of Home Affairs (MHA) approved an inquiry against Saurabh Bhardwaj and former Health Minister Satyendar Jain. The request was forwarded by Delhi Lieutenant-Governor V.K. Saxena in May.
An official in the L-G’s office earlier flagged serious irregularities:
- In 2018-19, 24 hospital projects were sanctioned with a total cost of ₹5,590 crore, but most remain incomplete with massive cost overruns.
- In September 2021, ₹1,125 crore was sanctioned for seven hospitals using pre-engineered structures, yet by 2024, only 50% of work was completed, while ₹800 crore had already been spent.
- The cost of a new block at Lok Nayak Hospital nearly tripled from ₹465.52 crore in 2018 to ₹1,125 crore in 2022.
The ED is expected to summon Bhardwaj, Jain, and key contractors for questioning in the coming weeks.
