Madras High Court Cancels Look-Out Circular Against Former Minister EV Velu In DVAC Corruption Case, Imposes Condition On Foreign Travel

The Madras High Court, on Tuesday (July 28), cancelled the look-out circular issued against former Minister EV Velu in connection with a case registered against him by the Tamil Nadu Directorate of Vigilance and Anti-Corruption, alleging corruption in the laying of roads while he was acting as Minister for Public Works. [2026 LiveLaw (Mad) 344]

Justice GK Ilanthiraiyan cancelled the circular after noting that Velu had come back to India and was cooperating with the investigation. The court was thus inclined to cancel the circular on the condition that Velu gives prior intimation to the jurisdictional magistrate if he intends to travel abroad. It may be noted that the court had previously stayed the operation of the circular.

"Now the circular has been acted upon. The petitioner has appeared before the 4th respondent [Deputy Superintendent of Police, Special Vigilance Cell] and cooperated for investigation. Keeping the LOC would not serve any purpose. Therefore, the circular is cancelled on the condition that the Petitioner shall take prior permission from the jurisdictional court if he wants to visit abroad," the court said.

The court also extended its earlier interim order asking the police not to take any coercive action against Velu. The court however made it clear that the DVAC could proceed with the investigation and could summon Velu as and when necessary. 

"You can proceed with the investigation. You can summon him whenever needed and conduct enquiry. Interim order is with respect to no coercive action," the court told State Public Prosecutor John Sathyan, appearing for the DVAC.

The court also allowed an impleading application filed by NGO Arappor Ayakkam, which was initially lodged the complaint allegiing irrregularities in the allocation of contracts. 

Background

The DVAC had registered an FIR against the former Minister and others on June 25, 2026, based on a complaint filed by the NGO Arappor Iyakkam in 2022, alleging that money was paid to a contractor before work began. It was alleged that there was corruption in the allotment of funds for road infrastructure projects.

The State Government accorded sanction to prosecute Velu on June 23, 2025, following which the FIR was registered.

DVAC claimed that there was prima facie material showing that the accused persons (including Velu) had entered into a criminal conspiracy and had caused losses to the exchequer.

The case is registered under Sections 120B, 420, 409, 468, and 471 of the IPC, along with Sections 7(c), 13(2) read with 13(1)(a), and 12 of the Prevention of Corruption Act, 1988. In the meantime, Velu had gone to Singapore for medical treatment. Following this, a lookout circular was issued against him.

When the case came up for hearing previously, Senior Advocate Siddharth Luthra (appearing for Velu) argued that no valid sanction was obtained before prosecuting Velu, as required under Section 17A of the Prevention of Corruption Act. It was also argued that it was not a case where the road was not laid at all. He submitted that the road was laid on a later date.

Senior Advocate P Wilson (also appearing for Velu) argued that the cases were registered following a regime change, and the LOC was issued without any credible material showing its necessity or proportionality. He argued that the condition precedent for issuing an LOC did not exist in the present case. It was submitted that the summons to appear was issued on June 30. However, on June 26th itself, Velu had gone to Singapore for medical treatment.

The Public Prosecutor, however, objected to the plea and argued that there was sufficient material to show that payments for the contracts were made even when the work was not carried out.

After hearing the parties, the court was inclined to stay the circular on the condition that Velu appear before the agency on July 15th and asked the authorities not to precipitate the issue of securing Velu till July 28.

Counsel for Petitioner: Mr Siddharth Luthra, Senior Advocate and Mr P Wilson, Senior Advocate for Richardson Wilson

Counsel for Respondents: Mr John Sathyan, State Public Prosecutor Assisted by M/s. Arun Anbumani, Government Advocate (Crl.Side)

Case Title: EV Velu v Union of India 

Citation: 2026 LiveLaw (Mad) 344

Case No: WP Crl 1626 of 2026