Former Tamil Nadu Minister Senthil Balaji gets pre-arrest bail from Supreme Court

Senior Advocate Kapil Sibal, appearing for Balaji, pointed out that allegations pertained to 2021-25 while the FIR was registered only on July 28 this year, after a change of government in Tamil Nadu. He said the case rested on an affidavit an Enforcement Directorate official had filed before the HC in 2025, and that the same official’s position had since shifted.

Senior Advocate Guru Krishnakumar appearing for the State argued that while Balaji was in office between 2021 and 2025, he had ensured no case was registered against him and that this could not now work in his favour merely because power had changed hands. He argued that granting anticipatory bail in a matter running into hundreds of crores would be inappropriate.

The CJI responded, saying that “Hold an investigation. Hold a scientific, objective, independent investigation. Find out the truth. If he is guilty, he will face the consequences.”

When Krishnakumar pressed on whether custodial interrogation might still be required if the investigation demanded it, Justice Bagchi said that “then come to us. He will not abscond…he was a Minister earlier….this man is not going to jump the investigation and go out of that. We will ensure that he participates in the investigation and we will ensure that he does not interfere with the investigation. If there is any breach or any perception of breach, please come to us.”

The case stems from an FIR registered by the Directorate of Vigilance and Anti-Corruption (DVAC) on July 28 against Balaji and six others over alleged irregularities in TASMAC between 2021 and 2025 when he was in charge of the excise portfolio. The agency has accused the group of manipulating liquor procurement transport contracts, bar licences and other decisions within the state-run corporation. It alleges that inflated invoices were used to generate unaccounted cash, which was then paid as kickbacks to TASMAC officials and that some outlets collected more than the maximum retail price from customers.

A day before the SC hearing, the Madras HC had refused Balaji anticipatory bail. Justice G K Ilanthiraiyan held that the allegations pointed to large scale corruption and that custodial interrogation was necessary for proper investigation.