The Supreme Court on Friday granted interim protection from arrest to former Tamil Nadu Minister and DMK MLA V Senthil Balaji in a corruption case relating to alleged irregularities in the functioning of the Tamil Nadu State Marketing Corporation (TASMAC).
The Bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi stayed Balaji’s arrest while issuing notice on his appeal challenging the Madras High Court’s order refusing anticipatory bail. The Court directed Balaji to cooperate with the investigation, surrender his passport and refrain from influencing witnesses until further orders.
The matter was initially listed before the Bench of CJI Kant, Justice Bagchi and Justice V Mohana. However, Justice Mohana recused herself from hearing the case, following which it was taken up by the two-judge Bench later in the day.
The case stems from an FIR registered by the Directorate of Vigilance and Anti-Corruption (DVAC) against Balaji and six others over alleged irregularities in liquor procurement, transport contracts, grant of bar licences and other administrative decisions within TASMAC between 2021 and 2025, when Balaji served as the State’s Minister for Prohibition and Excise for part of the period.
Following registration of the FIR, the DVAC carried out searches at over 40 locations across Tamil Nadu, including Balaji’s residence in Karur and premises linked to his former aides and other accused.
Besides Balaji, the FIR names former TASMAC Managing Director S. Visakan, former senior regional managers T. Ramadurai Murugan and R. Panneerselvam, Balaji’s former personal assistant Bhaskar, alleged middleman Rathesh Raj Shanmugavel and S. Karthik.
According to the investigating agency, bar licence tenders were manipulated through cartelisation, proxy ownership and the use of consecutively numbered demand drafts. The DVAC has alleged that Rathesh Raj exercised considerable influence over TASMAC’s functioning, including approval of liquor brands, transfers of officials and allotment of bar licences, with former Managing Director Visakan allegedly acting on directions originating from Balaji.
The agency has further alleged that certain distilleries generated unaccounted cash by inflating invoices relating to used liquor bottles and paid kickbacks to TASMAC officials in exchange for favourable supply orders. It has also alleged that several TASMAC outlets collected amounts above the maximum retail price, charging customers between Rs 10 and Rs 100 extra for various liquor brands and up to Rs 500 more for foreign liquor.
Justice G.K. Ilanthiraiyan of the Madras High Court had rejected Balaji’s anticipatory bail plea on July 30, prompting him to approach the Supreme Court.
Senior Advocate Kapil Sibal, appearing for Balaji, argued that the prosecution’s case had undergone significant changes following the change in government in Tamil Nadu after this year’s Assembly elections, contending that even the State’s Additional Secretary had altered his stand.
Opposing the plea, Senior Advocate Guru Krishnakumar, appearing for the Tamil Nadu government, argued that the case involved a massive corruption scam running into hundreds of crores and that custodial interrogation might become necessary. He further submitted that Balaji faced several criminal cases and that there was a risk of evidence being tampered with.
Addressing the submissions, Chief Justice of India Surya Kant emphasized the need for an unhindered, impartial probe, noting that if found guilty, the accused would have to account for his actions.
When the State questioned what would happen if custodial interrogation became necessary, Justice Bagchi observed that the State could approach the Court if such a situation arose. He added that the Court would ensure Balaji participated in the investigation and did not interfere with the probe, while granting liberty to the State to seek appropriate orders in the event of any breach.
The Court thereafter stayed Balaji’s arrest pending consideration of his anticipatory bail plea.
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