SC grants interim protection to Senthil Balaji in TASMAC case

The Supreme Court on Friday (July 31) stayed the arrest of former Tamil Nadu Minister and sitting MLA V. Senthil Balaji in the corruption case registered by the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) over alleged irregularities in the functioning of the Tamil Nadu State Marketing Corporation (TASMAC).

The interim protection will remain in force provided he cooperates with the investigation. A Bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi passed the order while hearing Balaji's challenge to the Madras High Court's refusal to grant him anticipatory bail.

The bench also directed him to deposit his passport and barred Balaji from influencing witnesses or tampering with evidence while the investigation continues.

Court questions custody

Appearing for Balaji, senior advocate Kapil Sibal called it a "strange case." He argued that the FIR was lodged only after the new TVK government assumed office and relied on material gathered during an Enforcement Directorate inquiry.

Also Read: TASMAC case: Madras HC junks Senthil Balaji’s anticipatory bail plea

"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 turned against...because the government changed. FIR filed on 28 July relying on that affidavit,” submitted Sibal as quoted by Live Law.

What CJI said

The Chief Justice asked why custodial interrogation was necessary when the allegations appeared to rest largely on documentary evidence. Representing the State, Senior Advocate Guru Krishnakumar replied that the alleged offences were committed between 2021 and 2025 and that Balaji, while serving as a Minister, had prevented the registration of the FIR.

Also Read: Why anticipatory bail rejection spells bigger trouble for Senthil Balaji in TASMAC case

Justice Bagchi observed that Balaji no longer held ministerial office. Krishnakumar nevertheless opposed anticipatory bail, arguing that the case involved serious corruption. He also referred to the Supreme Court's earlier adverse observations against Balaji in the cash-for-jobs case.

Interim relief continues

After hearing both sides, the Bench directed the State to file its response. It also clarified that the interim order could be revisited if the prosecution later established the need for custodial interrogation.

The DVAC registered the FIR on July 28, accusing Balaji and several others of conspiring with private individuals, distilleries, breweries, transport operators, bottling firms and unidentified TASMAC officials to misuse public office, fabricate records and divert public funds between 2021 and 2025.