Overview
- The Madras High Court on Thursday stayed the Look Out Circular and barred coercive steps until July 28 on the condition that E. V. Velu appear before the DVAC on July 15 and that the agency file its counter affidavit by July 28.
- The DVAC registered an FIR on June 25–26, 2026 based on a 2022 complaint by NGO Arappor Iyakkam naming Velu, serving and former highways engineers, and contractor Sankaranand Infra under criminal and Prevention of Corruption Act provisions.
- Investigators say they seized cash and documents in raids on June 25 and allege payments were released for road contracts before works were carried out, including Rs 3.23 crore in a Karur contract and about Rs 1.5 crore on two NABARD projects.
- Velu was in Singapore for medical treatment when summonses and the LOC were issued and his lawyers argued the FIR was filed without the Governor’s sanction under Section 17A and was delayed four years until a change of government, while the prosecution says there is prima facie material to proceed.
- The coming appearances and the DVAC counter due July 28 will test whether procedural protections under the Prevention of Corruption framework block prosecution or whether the agency’s evidence will let the investigation continue, with potential effects on further enforcement and any trial timeline.