The Supreme Court on Friday stayed the arrest of former Tamil Nadu Minister and present MLA V Senthil Balaji in the case registered by the Tamil Nadu Vigilance over alleged corruption in the TASMAC, subject to the condition that he cooperates with the investigation.

A bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi passed the interim order while hearing Balaji's plea challenging the Madras High Court's dismissal of his anticipatory bail plea in the matter. The bench further directed him to deposit his Passport and restrained him from influencing the witnesses and tampering with the evidence.

Senior Advocate Kapil Sibal, for Balaji, started by saying that it was a "strange case" and submitted that the FIR was filed in July after the new TVK government came to power, based on an enquiry by the Enforcement Directorate. "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"

The CJI asked the State, represented by Senior Advocate Guru Krishnakumar, why custodial interrogation was needed as the case was largely based on documentary evidence. Krishnakumar said that the allegations pertain to the incident of 2021-25 and Balaji prevented the registration of the FIR as he was then a Minister. Justice Bagchi then pointed out that he was no longer a Minister.

Krishnakumar further submitted that in a case of grave corruption, anticipatory bail was not warranted. He highlighted Balaji's antecedents, saying that the Supreme Court in previous judgments have adversely commented about him in the 'cash-for-jobs' matter.

The bench asked the State to file its response and granted interim protection to the petitioner. The bench said that it can modify the order if the State demonstrated a need for his custodial interrogation.

Senior Advocates Mukul Rohatgi and Amit Anand Tiwari were also present for Balaji. Additional Advocate General Haripriya Padmanabhan and Senior Advocate Siddharth Dave were also present for the State.

The matter was listed today after an urgent mention was made yesterday by Sibal along with Senior Advocates Mukul Rohatgi and Amit Anand Tiwari.

It may be noted that on July 28, the Directorate of Vigilance and Anti-Corruption booked the former minister and others, alleging large-scale irregularities in the functioning of the Tamil Nadu State Marketing Corporation (TASMAC) between 2021 and 2025, while Balaji was holding the office of Minister for Electricity and Prohibition & Excise in Tamil Nadu.

The FIR came to be registered for offences under Sections 120-B, 167, 409, 109, and 420 of the IPC, Sections 61(2), 201, and 316(5) of the BNS, and Sections 13(2) read with Section 13(1)(a)and Section 7(c) read with Section 12 of the Prevention of Corruption Act.

According to the prosecution, while holding the post of Minister, Balaji entered into criminal conspiracy with six others, including private individuals, distillery and brewery companies, transport firms, bottling firms and unknown public servants who were working in TASMAC, and committed criminal breach of trust, framed incorrect documents, and misappropriated money, thereby laundering huge illicit money and causing loss to the public exchequer.

Apprehending arrest in this case, Balaji approached the High Court seeking anticipatory bail. However, vide the impugned order, the High Court dismissed his plea, considering the large-scale corruption stated to be involved in the case and allegations of abuse of official position. It was opined that custodial interrogation was very much necessary.

Appearance: Senior Advocates Kapil Sibal, Mukul Rohatgi, NR Elango, Amit Anand Tiwari, AoR Misha Rohatgi, Advocates N Bharani Kumar, M Thangathurai, Nakul Mohta, Aparajita Jamwal, Devyani Gupta, Ayush Kashyap and Hitesh Nagar (for Balaji); Senior Advocates Guru Krishna Kumar and Siddharth Dave, AoR Vrinda Bhandari (for respondents)

Case Title: V. SENTHIL BALAJI v. THE STATE REPRESENTED BY THE INSPECTOR OF POLICE