Madras HC denies anticipatory bail to Senthil Balaji in TASMAC corruption case

The Madras High Court on Thursday rejected the anticipatory bail plea of former Tamil Nadu minister and DMK MLA V. Senthil Balaji in connection with the Directorate of Vigilance and Anti-Corruption's (DVAC) investigation into alleged corruption in the functioning of the Tamil Nadu State Marketing Corporation (TASMAC).

Dismissing the petition, Justice G.K. Ilanthiraiyan observed that the allegations involved large-scale corruption and held that custodial interrogation was necessary for an effective investigation.

The court noted the prosecution's contention that the accused had misused their official positions, entered into a criminal conspiracy and caused substantial financial loss to the state exchequer. It ruled that the seriousness of the allegations outweighed the grounds advanced by the defence for granting pre-arrest bail.

The case arises from an FIR registered by the DVAC on 28 July against Balaji and several others over alleged irregularities in TASMAC between 2021 and 2025, during his tenure as Minister for Electricity, Prohibition and Excise.

According to investigators, Balaji and six others allegedly conspired with private individuals, distillery and brewery companies, transport contractors, bottling firms and unidentified TASMAC officials to manipulate official procedures and misappropriate public funds. The agency has also alleged that the conspiracy facilitated the laundering of illicit money while inflicting significant losses on the state.

The FIR invokes provisions of the Indian Penal Code, the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act, including charges relating to criminal conspiracy, criminal breach of trust, cheating, falsification of records and corruption.

Seeking anticipatory bail, Balaji denied the allegations, arguing that the FIR relied on vague and general accusations without identifying any specific tender, contract or transaction directly linking him to the alleged offences.

He also claimed that the case was politically motivated and had been initiated because of hostility from the ruling party following the Karur stampede controversy.

Appearing on his behalf, senior advocate N.R. Elango submitted that TASMAC functioned as an independent corporation and that the minister had no role in awarding contracts or overseeing its day-to-day administration. He further argued that the Enforcement Directorate's earlier searches at TASMAC offices were already under challenge before the Supreme Court, where related proceedings are pending.

After hearing both sides, the High Court concluded that the gravity of the allegations and the need for a comprehensive investigation warranted custodial interrogation, leading to the dismissal of Balaji's anticipatory bail plea.

With IANS inputs