New Delhi, July 15: The Supreme Court on Wednesday declined to intervene in the interim relief granted to E.V. Velu, the former highways minister of Tamil Nadu and DMK MLA, by the Madras High Court. This decision means that the High Court’s order, which halted the Look Out Circular (LOC) against Velu and provided him protection from any punitive actions, remains in effect.
A bench comprising Justices Vikram Nath and Sandeep Mehta dismissed the Special Leave Petition (SLP) filed by the Tamil Nadu government, which challenged the High Court’s interim order.
During the hearing, senior advocate Abhishek Manu Singhvi, representing the Tamil Nadu government, argued that the High Court effectively granted relief akin to anticipatory bail, despite no such request being made in the petition. He contended that the order was passed in a case that only sought the cancellation of the LOC and that a broad stay on the investigative agency’s actions should not have been imposed.
However, the Supreme Court bench did not accept these arguments and upheld the interim protection granted by the Madras High Court, dismissing the state government’s petition.
E.V. Velu had filed a petition in the Madras High Court challenging the LOC issued against him. This LOC was issued in connection with a case registered by the Directorate of Vigilance and Anti-Corruption (DVAC) in 2026.
The DVAC had filed an FIR on June 24, citing various sections of the Indian Penal Code, including 120B (criminal conspiracy), 420 (cheating), 409 (criminal breach of trust by a public servant), 468 (forgery for the purpose of cheating), 471 (using forged documents), and 109 (abetment), along with several provisions of the Prevention of Corruption Act.
The Madras High Court had directed that the effect of the LOC be stayed until July 28, instructing Velu to appear before the investigating officer on July 15. The court also ordered the DVAC not to take any punitive action against him until the next hearing.
Senior advocate P. Wilson, representing Velu, stated that the former minister was undergoing medical treatment in Singapore and had informed the investigating agency that he would participate in the inquiry upon completion of his treatment on July 15.
The defense argued that despite this, the investigative agency hastily issued the LOC without adhering to the prescribed guidelines, and Velu feared arrest upon his return to India.
Meanwhile, the Tamil Nadu government informed the court that Velu had been sent multiple notices but failed to appear before the investigating officer, opting instead to travel to Singapore. This necessitated the issuance of the LOC.
The DVAC’s case against Velu is linked to a road construction project in Karur district during his tenure as highways minister. It is alleged that fraudulent claims were made for ₹3.23 crore of government funds for a project that was never completed.
Following the Madras High Court’s directive, E.V. Velu appeared before the DVAC for questioning on Wednesday. The investigation is ongoing.
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