Chennai, July 10:
The Madras High Court on Thursday stayed the Look Out Circular (LOC) issued against DMK strongman and former Minister EV Velu in a Directorate of Vigilance and Anti-Corruption (DVAC) case alleging corruption in highway contract and road infrastructure works, on the condition that he should appear before the Investigating Officer for enquiry on July 15.
Justice GK Ilanthiraiyan also directed the DVAC not to take any coercive action against Velu till July 28 and ordered the department to file its counter to his petition seeking to quash the FIR and the subsequent LOC.
Counsel for Velu, Mr P Wilson, also a Rajya Sabha MP, said “the Look Out Circular (LOC) is stayed, subject to the condition that the petitioner shall appear before the Investigating Officer on 15.7.2026 The respondent should file counter”.
He said investigation may proceed but the final report shall not be filed. The Investigating Officer shall not take any coercive steps against the petitioner till then, Juy 28, he added.
The DVAC had registered an FIR against Velu and others on June 25, 2026, based on a complaint lodged by NGO Arappor Iyakkam in 2022 alleging that payments were made to a contractor before the commencement of road infrastructure works, resulting in corruption in the allotment of project funds.
Following the State governmentās sanction to prosecute Velu, the FIR was registered. The DVAC claimed that there was prima facie material indicating that the accused, including Velu, had entered into a criminal conspiracy causing loss to the State exchequer. The case has been registered under Sections 120B, 420, 409, 468 and 471 of the Indian Penal Code and Sections 7(c), 13(2) read with 13(1)(a), and 12 of the Prevention of Corruption Act, 1988. Meanwhile, Velu, who had travelled to Singapore for medical treatment, was issued a Look Out Circular.
When the quash petition came up for hearing, Senior Counsel Siddharth Luthra, appearing for Velu, submitted that although Arappor Iyakkam had lodged the complaint in 2022 alleging irregularities in road-laying contracts during Veluās tenure as Minister, no action was taken for four years and the FIR was registered only after the change of government.
The counsel submitted that Velu had cooperated with the DVAC during a search at his residence on June 25, 2026, and left for Singapore the next day for medical treatment. Despite seeking time till July 12 to appear before the DVAC, a summons was issued directing him to appear on July 9, following which the LOC was issued. He argued that an LOC can be issued only if a person deliberately evades appearance or arrest, whereas Velu was undergoing medical treatment in Singapore and had not deliberately avoided the investigation.
Citing Section 17A of the Prevention of Corruption Act, Luthra argued that the FIR was registered without obtaining the Governorās prior approval, which was mandatory, and contended that the LOC was issued without any credible material to justify it.
Senior Advocate P. Wilson, also appearing for Velu, argued that the FIR was registered only after the change of government and that the LOC was issued without any credible material establishing its necessity or proportionality. He alleged that the case was an instance of āregime vengeanceā and submitted that the DVAC was repeatedly threatening arrest despite Velu being 76 years old and a heart patient.
Opposing the plea, Public Prosecutor John Sathyan submitted that there was sufficient material to show that payments were made to contractors even though the work had not been carried out.
It may be recalled that the DMK Leader did not appear before the DVAC officials for inquiry in the wake of the recent raids as he was under treatment at a hospital in Singapore and that he would be returning after treatment in about 10 days after which he would cooperate with the DVAC officials in the case and sought a fresh date for appearance.
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The DVAC, which had seized cash and several incriminating documents during the raids on June 25 in connection a disproportionte assets and alleged irregularatities in road contract works case, has summoned Velu to appear before it for questioning today.
It may be noted that DVAC officials had on June 25 conducted raids at the premises of former Tamil Nadu Highways and PWD Minister in a disproportionte assets and alleged irregularatities in road contract works case.
The DVAC has registered disproportionate assets and corruption case Velu, 10 Highways department officials, and a contractor over alleged misappropriation of funds through payments made for road works that were allegedly not executed in 2022.
This is the first corruption case registered by the DVAC against any former DMK Ministers after Chief Minister Vijay-led TVK stormed to power, defeating both the DMK and the AIADMK in the recent Assembly elections.
Reports said officials of the DVAC, now headed by ADGP A Arun, a former Chennai Greater Chennai City Police Commissioner who was once considered closed to the DMK, conducted the raids in about 14 locations linked to Velu in Chennai and in his native Tiruvannamalai district and other accused in the case. The searches were held at his residence in Chennai, at educational institutions owned by him and at the premises of Highways department engineers in Dindigul district.
According to the FIR, the case has been registered under various provisions of the law, including criminal conspiracy, cheating, criminal breach of trust and forgery, along with provisions of the Prevention of Corruption Act.
The complaint was filed based on a petition submitted by Jayaram Venkatesan, convenor of Arappor Iyakkam.
The FIR names Velu, who was then Minister for Public Works, Highways and Minor Ports, along with serving and former engineers of the Highways Department and contractor Sankaranand Infra. Investigators allege that the officials, in collusion with the contractor, authorised payments for road improvement works without the work being carried out.
The complaint states that although the contract for road works in Karur was awarded for about Rs 7 crore in March 2022, payments amounting to Rs 3.23 crore were released on March 25 and 28 despite the works allegedly remaining incomplete. It also alleged that around Rs 1.5 crore was similarly released for two NABARD-funded road projects in Karur without execution of the works.