Supreme Court to Hear Bail Plea of Former Tamil Nadu Minister in Corruption Case
Supreme Court Agrees to Hear Bail Application
The Supreme Court has agreed to review the anticipatory bail plea of V. Senthil Balaji, a former minister and DMK leader, linked to alleged irregularities in the operations of the Tamil Nadu State Marketing Corporation (TASMAC). Previously, the Madras High Court had dismissed Balaji's bail application filed in connection with the case by the Directorate of Vigilance and Anti-Corruption (DVAC). Following the rejection, senior advocates Kapil Sibal, Mukul Rohatgi, and Amit Anand Tiwari requested an urgent hearing before the bench comprising Chief Justice Suryakant, Justice Joymalya Bagchi, and Justice V. Mohan.
Allegations of Large-Scale Fraud
According to a new FIR, there are serious allegations of fraud concerning the allocation of liquor shops and bars within TASMAC. Balaji contends that the FIR directly quotes content from the Enforcement Directorate's (ED) affidavit and the petition filed in the Supreme Court regarding a money laundering investigation. The plea asserts that multiple sections of the FIR reference material taken from the ED's counter-affidavit and the petition submitted to the Supreme Court.
Defense Arguments Presented
Advocate Tiwari argued, "Our position is that the FIR pertains to events occurring between 2021 and 2025. There is no risk of my client fleeing, nor is there a need for custodial interrogation. He served as a minister while TASMAC operates independently." He further claimed that Balaji has no direct involvement in the case, suggesting that the actions taken are politically motivated.
Judicial Intervention Concerns
The senior advocate expressed concerns that the FIR represents an interference in ongoing proceedings in the Supreme Court. The petitions filed by TASMAC and the Tamil Nadu government, which include the ED's counter-affidavit, seek to halt investigations against TASMAC and prevent any punitive actions. Thus, filing an FIR based on the pending case's affidavit is tantamount to judicial interference.
Allegations of Financial Misconduct
The High Court referenced allegations against Balaji regarding damage to the state treasury, asserting that custodial interrogation is necessary for the investigation. The DVAC's FIR claims that Balaji conspired to manipulate TASMAC's operations, leading to fraudulent practices in bar licenses and transportation contracts, benefiting select liquor manufacturers and causing financial losses to the state.
Details of the FIR
The DVAC has filed an FIR against seven individuals, including Balaji, former TASMAC Managing Director S. Visakan, and five others. The FIR accuses them of embezzlement through fraudulent transactions related to bar license allocations and manipulation of procurement and tender processes. Among the other accused are Balaji's close associates, Rathesh Raj Shanmugavel and S. Karthik, along with his former personal assistant Bhaskar and former TASMAC officials R. Ramadurai Murugan and R. Paneerselvam.
Organized Crime Allegations
The FIR also mentions an alleged organized gang known as the 'Karur Gang,' purportedly controlled by Karthik. This gang is accused of operating all liquor bars in Karur district and exerting pressure on officials to secure bar licenses for their preferred candidates across Tamil Nadu. The FIR outlines a systematic cash commission scheme involving millions, where companies supplying bottles created fake or inflated bills in the name of distilleries.