Dave submitted that the agency was entitled to probe, and an inquiry may, if justified, be ordered by a subsequent government and that change of the government is no ground for the inquiry to not happen.
He said that the apex court had earlier held that investigation must take place and it cannot be interdicted.
However, the bench expressed its disinclination to interfere with the high court order.
Dave insisted that this is a serious case of corruption and the court must allow DVAC to at least investigate.
He pointed out that the preliminary investigation was made when Palaniswami was in charge of the public works department and the police, besides being the chief minister of the state.
The bench told Dave, "Whatever is usually permissible within the four corners of the law, you may do".
The bench said, "We are neither allowing anything, nor stopping you”.
Dave said the high court's observations will come in the way and the aspect of political rivalry should not come in the way of an investigation, if the use of the power is for a legitimate object.
He said that this matter, a very serious one, will require detailed examination. However, the bench was not convinced and dismissed the appeal filed by DVAC.
Palaniswami, the general secretary of All India Anna Dravida Munnetra Kazhagam (AIADMK), served as the CM between 2017 and 2021. It has been alleged that he awarded contracts in the highway department based on favouritism during his tenure as the CM.
A previous inquiry conducted by the DVAC cleared him of suspicion.