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High Court Reinstates AIADMK's S.P. Velumani as Accused in Major Corporation Contract Scandal

  • Nishadil
  • September 03, 2025
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  • 2 minutes read
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High Court Reinstates AIADMK's S.P. Velumani as Accused in Major Corporation Contract Scandal

A dramatic turn of events has once again placed former AIADMK Minister S.P. Velumani firmly in the crosshairs of a major corruption investigation. The Directorate of Vigilance and Anti-Corruption (DVAC) has been compelled to re-list Velumani as an accused in a high-profile case involving alleged irregularities in the awarding of corporation contracts, a decision directly mandated by the Madras High Court.

This development comes after a period of judicial scrutiny that saw the High Court sharply question the DVAC's previous move to drop Velumani from the list of accused in December 2021.

The initial FIR, registered in March 2021, implicated Velumani and ten other individuals in a scandal concerning the allocation of various works in both Chennai and Coimbatore Corporations between 2014 and 2018. During this period, Velumani held the crucial portfolio of Minister for Municipal Administration and Rural Development.

The core of the allegations paints a concerning picture of abuse of power.

Investigators suspect a meticulously orchestrated scheme of tender rigging, where a cartel of companies, allegedly linked to Velumani's relatives and close associates, was systematically favored. This intricate web of favoritism is believed to have facilitated the illegal awarding of contracts, undermining fair competition and public trust.

The DVAC's initial probe seemed to gain traction, but then, in a surprising twist in December 2021, the agency filed a closure report before a Special Court, asserting a lack of sufficient evidence against Velumani and effectively dropping him from the case.

This decision, however, did not sit well with public interest groups and political opponents. Petitions filed by the anti-corruption organization Arappor Iyakkam and DMK leader Jayaram Venkatesan vehemently challenged the DVAC's sudden change of stance, pushing for a deeper investigation.

Justice N.

Anand Venkatesh of the Madras High Court emerged as a pivotal figure in this saga. In a scathing ruling, the judge critically dismantled the DVAC's rationale for dropping Velumani, highlighting a significant lack of detailed investigation. He emphasized that merely stating "no evidence" without a thorough examination of the collected materials was insufficient and suggested a superficial approach to justice.

The High Court's directive was unequivocal: a fresh re-investigation must be conducted, explicitly including S.P.

Velumani and other public servants previously implicated. To ensure the integrity and thoroughness of this renewed probe, the court stipulated that the investigation be overseen by the Superintendent of Police, DVAC, Headquarters. Furthermore, a strict three-month deadline has been imposed for the completion of this re-investigation.

While the DVAC is reportedly contemplating an appeal against the High Court's order in the Supreme Court, it has, in the interim, complied with the immediate directive.

This means S.P. Velumani is once again formally recognized as an accused in a case that promises to keep Tamil Nadu's political landscape on edge, as the wheels of justice continue to turn in this unfolding saga of alleged corruption.

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