Explained: What Is Delhi Hospital Construction Scam? ED Raids AAP MLA Saurabh Bharadwaj's Residence Over Alleged ₹5,590-Cr Health Infra Fraud

New Delhi: The Enforcement Directorate (ED), on Tuesday, August 26, carried out raids at multiple locations in Delhi, including the residence of Aam Aadmi Party (AAP) MLA Saurabh Bharadwaj. The searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002.

As per a report by ANI, officials revealed that the investigation focuses on alleged financial misconduct and diversion of funds linked to the delayed and over-budget hospital construction projects.

What Is the Delhi Hospital Construction Scam?

The Delhi hospital construction scam refers to a large-scale financial irregularity in the execution of 24 hospital projects, 11 greenfield and 13 brownfield, sanctioned in 2018-19 by the AAP government, with an approved budget of Rs 5,590 crore. The Anti-Corruption Branch (ACB) of the Delhi Police has alleged that these projects have faced unjustified delays and drastic cost escalations, suggesting a systematic embezzlement of public funds.

According to the ACB, several health infrastructure projects were never completed despite being scheduled for delivery within a short timeline. For instance, an ICU hospital meant to be finished in six months remained incomplete after three years.

Similarly, the construction cost of LNJP Hospital surged from Rs 488 crore to Rs 1,135 crore, despite no major progress on site. These discrepancies form the basis of the current investigation into suspected misappropriation and manipulation of contracts.

ED Investigates Money Laundering

The ED action comes after a First Information Report (No 37/2025) filed by the ACB on June 26, 2025, against former Delhi Health Ministers Saurabh Bharadwaj and Satyendra Jain, along with government contractors and unnamed officials.

The FIR was registered after the ACB received approval under Section 17A of the Prevention of Corruption Act and a detailed complaint from then Leader of Opposition Vijender Gupta.

AAP Terms Raids As 'Political Vendetta'

AAP condemned the ED’s actions, calling the raids on Bharadwaj a "diversionary tactic" and dismissing the case as "politically motivated". The party also said that the allegations relate to a time when Bharadwaj was not even serving as a minister.

Bharadwaj, MLA from Greater Kailash, has held key portfolios including Health, Urban Development and Water. He is also Chairman of the Delhi Jal Board and a party spokesperson.

AAP argued that similar ED actions against leaders like Manish Sisodia, Satyendar Jain, Amanatullah Khan and Arvind Kejriwal reflect a broader pattern of targeted harassment towards their party members.