New Delhi, July 15 (IANS) The Supreme Court on Wednesday declined to interfere with the Madras High Court’s interim order staying the Look Out Circular (LOC) issued against former Tamil Nadu Highways Minister and DMK MLA, E.V. Velu and protecting him from coercive action in connection with a Directorate of Vigilance and Anti-Corruption (DVAC) case alleging a Rs 3.23-crore highway fraud.

A Bench of Justices Vikram Nath and Sandeep Mehta dismissed the Special Leave Petition (SLP) filed by the Tamil Nadu government challenging the interim order passed by the Madras High Court.

Appearing for the Tamil Nadu government, senior advocate Abhishek Manu Singhvi argued that the High Court had effectively granted anticipatory bail in proceedings where no such relief had been sought.

“The order was passed in a quashing petition which has no prayer regarding anticipatory bail. Secondly, a blanket embargo in a quashing petition should not be given,” Singhvi submitted.

However, the Justice Vikram Nath-led Bench declined to interfere with the interim protection granted by the Madras High Court and dismissed the state government’s plea.

The SLP arose from an interim order passed by the Madras High Court in a writ petition filed by Velu seeking withdrawal of the LOC issued against him in connection with DVAC Headquarters Crime No. 3 of 2026.

The FIR, registered on June 24, invokes offences under Sections 120B (criminal conspiracy), 420 (cheating), 409 (criminal breach of trust by a public servant), 468 (forgery for the purpose of cheating), and 471 (using as genuine a forged document), read with Section 109 (abetment) of the Indian Penal Code, along with provisions of the Prevention of Corruption Act.

The Madras High Court had stayed the operation of the LOC until July 28 on the condition that Velu appear before the Investigating Officer on July 15.

It had also directed the DVAC not to take any coercive steps against him till the next date of hearing.

Before the High Court, senior advocate P. Wilson, appearing for Velu, had submitted that the former minister was undergoing medical treatment in Singapore and had informed the investigating agency that he would appear for enquiry on July 15 after completion of his treatment.

It was argued that despite this communication, the investigating agency mechanically issued the LOC without adhering to the applicable guidelines and that Velu apprehended arrest upon his return to India.

Opposing the plea, the Tamil Nadu government had contended that repeated notices had been issued to Velu, but he failed to appear before the Investigating Officer and had travelled to Singapore, leaving the authorities with no option but to issue the LOC.

The Madras High Court had observed that the matter required consideration and granted interim relief while directing Velu to cooperate with the investigation.

Following the High Court’s direction, Velu appeared before the DVAC on Wednesday for questioning in connection with the alleged Rs 3.23-crore highway fraud case linked to his tenure as Highways Minister.

The DVAC case relates to allegations that public funds amounting to Rs 3.23 crore were fraudulently claimed for a road construction project in Karur district that was allegedly never executed during Velu’s tenure as Highways Minister.

–IANS

pds/rad