Supreme Court Seeks ED's Response On Ex-Tamil Nadu Minister Senthil Balaji's Plea To Relax Bail Conditions In Money Laundering Case

The Supreme Court today issued notice on an application filed by ex-Tamil Nadu Minister V Senthil Balaji seeking relaxation of his bail conditions in the money laundering case arising out of the cash-for-jobs 'scam'.

A bench of Justices Surya Kant and Joymalya Bagchi passed the order, after hearing Senior Advocates Kapil Sibal and Narendra Hooda. Advocate Zoheb Hossain appeared for ED and Senior Advocate Gopal Sankaranarayanan represented complainant-Y Balaji.

During the hearing, Sibal informed that modification of the September bail order is being sought qua 2 conditions, that is:

"(c) The appellant shall mark his attendance every Monday and Friday between 11 am and 12 noon in the office of the Deputy Director, the Directorate of Enforcement at Chennai. He shall also appear on the first Saturday of every calendar month before the investigating officers of the three scheduled offences; ...

(e) The appellant shall regularly and punctually remain present before the Courts dealing with scheduled offences as well as the Special Court and shall cooperate with the Courts for early disposal of cases;"

Hossain, for ED, strongly opposed the plea for modification, saying that the bench that imposed the conditions was conscious of their stringent nature, and that these conditions have ensured smooth progress of trial. 

Sibal however contended that investigation being over and complaint having been filed, the opposition to relaxation of the condition's is nothing but adversarial. He highlighted that Balaji has never absconded and has appeared on 116 occasions before ED.

Hearing the parties, Justice Kant said that today the bench would not be saying anything. However, ED must respond as to whether Balaji's appearance before it is still required or not in terms of condition (c). "These are essentially only judicial proceedings. It's not similar to the political battlefield", remarked Justice Kant.

On September 26, 2024, the Supreme Court allowed the bail plea of Balaji in the money laundering case. A bench of Justice Abhay Oka and Justice AG Masih had reserved its judgment and flagged delay in trial on August 12, 2024. Justice Oka, while pronouncing the verdict, said that stringent bail provisions and delay in trial could not go together.

In its judgment, the Court held that higher thresholds for granting bail in stringent penal statutes like the PMLA, UAPA, and NDPS Act cannot be a tool to keep an accused incarcerated without trial. It emphasized the incompatibility of stringent bail provisions with prolonged delays in trial. The Court cited the judgment in Union of India v. KA Najeeb, emphasizing that constitutional courts have the power to grant bail if it is evident that the trial will not be completed within a reasonable time. In such cases, the prolonged incarceration of an undertrial violates the fundamental right to liberty and the right to a speedy trial under Article 21 of the Constitution, it observed.

At the same time, the Court recorded that there was a prima facie case against Balaji. While he was granted on the ground of delay in trial, it observed that there was no reason to doubt the incriminating files against Balaji at that stage. The Court noted that printed version of files from the pen drive seized from Balaji's premises during the investigation into scheduled offences was certified by the Special Court MP/MLA Court, and at that stage, there was no reason to doubt its authenticity. It also found prima facie evidence to support the allegation that Rs. 1.34 crores had been deposited in Balaji's bank account. The Court further said that there was no prima facie evidence to support Balaji's explanation that cash deposit to his account was derived from his salary as an MLA and agricultural income.

Background

Senthil Balaji, a former Tamil Nadu Minister and current MLA, is accused in a money laundering case stemming from allegations of his involvement in a cash-for-jobs scam during his tenure as the state's Transport Minister between 2011 and 2016.

He is alleged to have orchestrated a scheme with his personal assistants and brother to collect money from job seekers in exchange for promises of employment in the Tamil Nadu Transport Department. Numerous complaints were filed by candidates who paid substantial amounts but did not secure the promised jobs. Based on these allegations, the ED registered an Enforcement Case Information Report (ECIR).

In June 2023, the ED arrested him under the Prevention of Money Laundering Act (PMLA) on charges linked to this scam. Balaji then challenged the denial of bail by the Madras High Court before the Supreme Court. On September 26, the Supreme Court granted him bail.

Case Title: V. SENTHIL BALAJI v. THE DEPUTY DIRECTOR, Diary No. - 63441/2025

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