The Madras High Court on Thursday (30 July) refused anticipatory bail to former Tamil Nadu Minister and DMK MLA V Senthil Balaji in a corruption case linked to the functioning of the Tamil Nadu State Marketing Corporation (TASMAC). The Court held that the allegations required a detailed custodial interrogation at this stage of the investigation.
Justice GK Ilanthiraiyan passed the order while hearing Balaji's plea seeking protection from arrest after the Directorate of Vigilance and Anti-Corruption (DVAC) registered a fresh case against him and six others.
Background of the Case
The DVAC recently registered an FIR alleging irregularities in TASMAC's liquor procurement, bar licence tenders, transport contracts and administrative decisions between 2021 and 2025, a period during which Balaji served as Minister for Prohibition and Excise for part of the time.
According to the investigating agency, the alleged irregularities involved manipulation of tenders, cartelisation, proxy ownership of bar licences and financial losses to the State. Searches were conducted at more than 40 locations across Tamil Nadu following the registration of the case.
Balaji denied the allegations and argued before the Court that there was no specific material directly connecting him to the alleged offences. His counsel also contended that TASMAC functions as an independent corporation and that the Minister had no direct role in its tender process.
Court's Observation
During the hearing, the State submitted that the alleged loss of more than ₹17 crore reflected only a part of the suspected financial irregularities and that the investigation was still unfolding.
Rejecting the plea, the Court observed that "custodial interrogation is very much necessary" considering the nature of the allegations and the materials placed before it.
The Court also noted the prosecution's allegations of abuse of official position and an alleged conspiracy resulting in significant loss to the public exchequer.
Decision
Finding that the investigation required custodial interrogation, Justice GK Ilanthiraiyan declined to grant anticipatory bail and dismissed V Senthil Balaji's petition.
Case Title: Senthil Balaji v. The State
