New Delhi, Jul 31 In a major relief to DMK leader and former minister V Senthil Balaji, the Supreme Court on Friday granted him anticipatory bail till further orders in a fresh corruption case lodged against him by the Tamil Nadu government.
A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi stayed his arrest with certain conditions - that he will cooperate with the investigation, deposit his passport and not influence any witnesses and tamper with evidence.
"You immediately come to us even if there is slightest breach in bail conditions. We will modify or cancel our orders," Justice Bagchi told senior advocate Guru Krishnakumar, appearing for the Tamil Nadu government.
The case, pertaining to alleged irregularities in the Tamil Nadu State Marketing Corporation (TASMAC) saw fast paced twist and turns in last couple of days.
On Thursday, the Madras High Court dismissed his pre-arrest bail plea saying his custodial interrogation was needed.
Within a couple of hours, a battery of senior lawyers led by Kapil Sibal mentioned the appeal against the denial of bail before the apex court for urgent hearing.
The top court took the plea and listed it for hearing on Friday, when Justice Mohana recused herself from hearing. The petition was taken up for hearing during the day by a bench headed by CJI owing to the urgency.
During the hearing, the Chief Justice asked Krishnkumar, why Balaji's custodial interrogation was needed as the case was largely based on documentary evidence.
The senior counsel replied that the allegations pertain to the incident of 2021-25 and Balaji prevented the registration of the FIR as he was then a minister and therefore he cannot get a blanket protection from the court.
Sibal along with senior counsels Mukul Rohatgi and Amit Anand Tiwari, appearing for Balaji submitted that it was a "strange case" as the FIR was filed on July 28 after the new TVK government led by Chief Minister Joseph Vijay came to power, based on an affidavit filed by the Enforcement Directorate (ED) in another case.
"The events they say are of 2021-25. There's an affidavit filed by ED in 2025 in this court. The person who filed the affidavit has now turned as the government has come into existence. FIR filed on July 28 relying on that affidavit," he submitted.
Justice Bagchi then pointed out that he was no longer a minister and the state government was not under his influence and the court will ensure that he does not run away from the investigation and influence the witnesses.
Krishnakumar further submitted that it was a case of grave corruption and anticipatory bail was not warranted.
He pointed out Balaji's antecedents, saying that the top court has also earlier adversely commented on his conduct in the case.
The top court issued notice to Tamil Nadu government on the plea and said the government can approach the court, if his custodial interrogation was needed in the case.
The bench observed that these are all political matters and ordered that subject to Balaji joining the investigation in the case, his arrest shall be stayed till further orders in the FIR registered on July 28.
It posted the matter for further hearing after three weeks.
The high court had dismissed the anticipatory bail petition of Balaji in the FIR lodged by the Directorate of Vigilance and Anti-Corruption (DVAC) in the TASMAC scam case.
Balaji represents Coimbatore South in the Tamil Nadu assembly.
According to the FIR, a large-scale scam took place in TASMAC in the allotment of shops and bars.
Balaji alleged that the FIR quoted verbatim the ED's affidavit and the petition the agency filed before the Supreme Court.
In fact, the FIR itself at various places says that it is from the counter affidavit and petition of the ED, the plea said.
The FIR details a systematic cash-kickback scheme involving tens of crores, where bottle supply companies generated bogus or inflated invoices for distilleries.
The DVAC in its FIR said that Balaji entered into a criminal conspiracy to manipulate TASMAC's functioning by rigging bar and transport tenders, favouring a few select liquor manufacturers, resulting in overpricing of liquor, and causing financial loss to the public exchequer. The DVAC registered an FIR against seven accused.
The FIR against Balaji, former TASMAC managing director S Visakan and five others was for alleged misappropriation, manipulation of procurement and tender processes in allotting bar licences, transport tenders, and bogus and inflated transactions by certain distilleries and bottling firms.
The FIR highlighted the operation of an alleged organised syndicate known as the "Karur gang", allegedly controlled by Karthik.
Allegedly, the syndicate ran all liquor bars in Karur district and coerced officials into allotting bar licences across Tamil Nadu to their favoured candidates.
TASMAC retail shops systematically collected excess amounts over the maximum retail price (MRP) from consumers in an organised manner, overcharging between Rs 10 and Rs 100 for standard liquor and up to Rs 500 for foreign liquor, the FIR stated.
The case has been registered under Sections 120B, 167, 409, 109, and 420 of the IPC, corresponding provisions of the Bharatiya Nyaya Sanhita (BNS), 2023 (including Sections 61(2), 201, 316(5), 49, and 318(4)), and Sections 7(c), 12, 13(1)(a), and 13(2) of the Prevention of Corruption Act, 1988 (as amended in 2018).
