CHENNAI: The Madras High Court on Thursday barred the Directorate of Vigilance and Anti-Corruption (DVAC) from taking any coercive action against former Tamil Nadu PWD and Highways Minister EV Velu in connection with alleged irregularities in road projects executed during his tenure in the previous DMK government.
Justice GK Ilanthiraiyan granted the interim relief while hearing Velu's petition seeking to quash the FIR registered by the DVAC on June 24, 2026.
The court directed that no coercive action be taken against Velu until July 28, 2026, and asked the DVAC to file its counter-affidavit by then.
In a separate petition challenging the lookout circular (LOC) issued by the DVAC, the judge stayed its operation until July 27. However, Velu was directed to appear before the investigating officer on July 15.
The orders come as a major relief for Velu, who is currently undergoing medical treatment at a hospital in Singapore.
The DVAC registered the FIR against Velu, certain government officials and a contractor on June 24 based on a complaint filed in 2022 by anti-corruption NGO Arappor Iyakkam.
The agency has accused Velu of irregularly releasing Rs 3.23 crore to a contractor before the completion of road works in Karur district.
Appearing for Velu, senior advocates Siddharth Luthra and P Wilson questioned the bona fides of the DVAC in registering the FIR and issuing summons.
They argued that the agency had failed to obtain prior sanction from the Governor, as required under Section 17A of the Prevention of Corruption Act, before initiating the inquiry.
Luthra contended that the DVAC could not proceed with the investigation without the Governor's approval, as mandated by law.
Wilson alleged that the FIR was politically motivated, pointing out that while the alleged incident occurred in 2022, the FIR was registered only in 2026.
He further argued that reports submitted by the Chief Engineer and Superintending Engineer stated that the advance payment had caused no loss to the government, while disciplinary action had already been taken against nine officials.
Questioning the issuance of the lookout circular, Wilson said Velu was not absconding and had informed the DVAC that he was undergoing medical treatment abroad, seeking permission to appear for questioning after July 12.
He also alleged that the TVK government was targeting DMK leaders and argued that Velu's personal liberty should not be curtailed.
Opposing the plea, State counsel R John Sathyan submitted that funds had been released even before the road work commenced. He alleged that one contractor had been favoured with contracts worth Rs 195 crore across districts including Salem and Namakkal.
He further claimed that no quality certificate had been obtained for the road works and said the investigation had uncovered material supporting allegations of criminal conspiracy.