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Tamil Nadu moves Supreme Court against stay on look-out circular issued to former Minister EV Velu

The case follows allegations of irregularities in the implementation of the State's Comprehensive Road Infrastructure Development Programme.

Published Jul 13, 2026 | 1:34 PMUpdated Jul 13, 2026 | 1:34 PM

EV Velu.
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Synopsis: The Tamil Nadu government has moved the Supreme Court against the Madras High Court’s interim stay on a Look-Out Circular issued to former DMK Minister EV Velu in connection with a DVAC investigation into alleged irregularities in a ₹5,000 crore road infrastructure programme. The Supreme Court said it would consider listing the State’s plea for hearing on 15 July.

The Tamil Nadu government has approached the Supreme Court challenging the interim stay granted by the Madras High Court on the Look-Out Circular (LOC) issued against former DMK Highways Minister EV Velu in connection with an alleged multi-crore corruption case under investigation by the Directorate of Vigilance and Anti-Corruption (DVAC).

The apex court said it would consider listing the State government’s petition for hearing on 15 July.

The case follows allegations of irregularities in the implementation of the State’s Comprehensive Road Infrastructure Development Programme, which had a total allocation of ₹5,000 crore.

The case is based on a complaint filed in 2022 by the anti-corruption organisation Arappor Iyakkam, which alleged that crores of rupees were released in advance to private contractors for road works that were never carried out on the ground.

Although the complaint remained pending for four years, the investigation gathered pace after the Tamilaga Vettri Kazhagam-led government assumed power in Tamil Nadu.

Subsequently, the DVAC registered an FIR naming Velu, officials of the Highways Department, and private contractors.

On 25 June, DVAC officials conducted searches at properties associated with Velu. The following day, the former Minister travelled to Singapore for cardiac treatment.

As Velu had left the country while the investigation was under way, the authorities issued a Look-Out Circular declaring him a wanted person.

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Minister maintains innocence

EV Velu moved the Madras High Court seeking to quash the FIR and the Look-Out Circular. His counsel contended that the case was politically motivated following the change in government, arguing that no action had been taken on the complaint for four years.

They also submitted that the police had failed to obtain the Governor’s prior mandatory sanction to prosecute a former Minister.

Opposing the plea, the DVAC told the High Court that public funds had been systematically misappropriated, alleging that payments were released for road works that had not been executed and without the requisite fitness and completion certificates.

After hearing both sides, the High Court granted an interim stay on the Look-Out Circular, directing Velu to return to India and appear before the DVAC for questioning on 15 July.

The Tamil Nadu government subsequently challenged the interim relief before the Supreme Court.

Appearing for the State, counsel Jayashree Narasimhan sought an urgent hearing before a Bench led by Chief Justice of India Surya Kant.

Meanwhile, after returning to Chennai from Singapore, Velu said he was neither absconding nor in hiding and was prepared to cooperate fully with the investigation.

(Edited by Dese Gowda)

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