The present invention relates to An Advanced Glycation End product (AGE) - tagged site specific drug delivery system and nanoparticles produced thereof. In particular, it relates to fonnulation of an Argpyrimidine - tagged site specific drug delivery system made of biocompatible polymer, to selectively bind to the Receptors of AGEs (RAGEs) on the inflammatory cell surface in Diabetic complications. It also relates to the process of preparation of a bioflavonoid entrapped Argpyrimidine - tagged target specific nanoparticles composite.