Supreme Court Stays Senthil Balaji’s Arrest in TASMAC Corruption Case, Grants Interim Protection
In a significant interim relief to former Tamil Nadu Minister and DMK MLA V. Senthil Balaji, the Supreme Court has stayed his arrest in the alleged Tamil Nadu State Marketing Corporation (TASMAC) corruption case. The Court granted protection from coercive action while hearing his plea challenging the Madras High Court’s refusal to grant anticipatory bail.
A Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi directed that Balaji’s arrest shall remain stayed, subject to strict conditions. The Court ordered him to cooperate fully with the ongoing investigation, surrender his passport, refrain from influencing witnesses or tampering with evidence, and comply with any directions issued by the investigating agency. The Bench also clarified that any violation of these conditions could result in modification or cancellation of the interim protection.
The relief came a day after the Madras High Court dismissed Balaji’s anticipatory bail plea in the case registered by the Directorate of Vigilance and Anti-Corruption (DVAC). Following the High Court’s order, Balaji approached the Supreme Court on an urgent basis, contending that he faced imminent arrest and that custodial interrogation was unnecessary.
The DVAC FIR alleges large-scale irregularities in the functioning of TASMAC between 2021 and 2025, including manipulation of liquor procurement, transport contracts, bar licence tenders, transfers of officials, and overpricing of liquor sold through state-run outlets. Investigators have also alleged the existence of a network of officials and intermediaries who influenced administrative decisions for illegal financial gains. Searches were conducted at more than 40 locations across Tamil Nadu after the registration of the case.
Balaji has denied all allegations, arguing that the FIR substantially reproduces material from Enforcement Directorate pleadings in pending proceedings before the Supreme Court. His counsel submitted that the prosecution is politically motivated, that he poses no flight risk, and that no custodial interrogation is warranted. The defence also argued that the FIR interferes with matters already under judicial consideration.
While granting interim protection, the Supreme Court did not express any opinion on the merits of the allegations. Instead, it balanced the interests of the investigation with the need to protect the liberty of the accused during the pendency of judicial proceedings. The Court has sought responses from the State authorities and will consider Balaji’s challenge to the FIR and related proceedings at a later stage.
The order marks another significant development in the ongoing legal battle surrounding the alleged TASMAC corruption case, which has emerged as one of Tamil Nadu’s most closely watched political and criminal investigations. While the investigation by the DVAC will continue, Balaji will remain protected from arrest for the time being, subject to strict compliance with the conditions imposed by the Supreme Court.
