Published Jul 09, 2026 | 5:45 PM ⚊ Updated Jul 09, 2026 | 5:45 PM
EV Velu.
Synopsis: The DVAC had registered a case against Velu, Highways Department officials and contractors following a complaint by Arappor Iyakkam alleging that funds were released to private contractors under the ₹5,000-crore road infrastructure scheme without any work being carried out, resulting in financial irregularities.
The Madras High Court on Thursday, 9 July, granted interim relief to former Tamil Nadu Highways Minister EV Velu in a corruption case registered by the Directorate of Vigilance and Anti-Corruption (DVAC) over alleged irregularities in the Integrated Road Infrastructure Development Scheme.
The DVAC had registered a case against Velu, Highways Department officials and contractors following a complaint by Arappor Iyakkam alleging that funds were released to private contractors under the ₹5,000-crore road infrastructure scheme without any work being carried out, resulting in financial irregularities.
Velu has moved the High Court seeking to quash the FIR. He has also challenged a lookout circular (LOC) issued against him after he travelled abroad for medical treatment.
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When the petitions came up for hearing before Justice GK Ilanthiraiyan, senior advocates Siddharth Luthra and P Wilson, appearing for Velu, argued that under the recent amendments to the Prevention of Corruption Act, prior government sanction was mandatory before registering the case and initiating an investigation.
The counsel further submitted that although the complaint was made in 2022, the FIR was registered only four years later, after a change in government. They argued that disciplinary action had already been initiated against officials for releasing payments before road works were completed and that the government had suffered no financial loss.
On the lookout circular, the defence contended that Velu had cooperated with the DVAC during searches and had travelled to Singapore only for medical treatment. They informed the court that he is expected to return to India on 12 July and argued that a lookout circular can be issued only when there are credible grounds to believe an accused is attempting to evade arrest.
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Appearing for the DVAC, senior counsel John Sathyan argued that payments had been released to contractors before completion of the works and without obtaining quality certification. He submitted that one contractor alone had received ₹195 crore for 85 works despite the projects remaining incomplete. He also argued that the authority competent to grant sanction under the amended Prevention of Corruption Act had not yet been identified.
After hearing both sides, Justice Ilanthiraiyan directed the DVAC to file its response to Velu’s plea to quash the FIR by 27 July and ordered that no coercive action be taken against him until then.
In the petition challenging the lookout circular, the court granted an interim stay on the LOC, subject to the condition that Velu appear before the DVAC for inquiry on 15 July.
