Tamil Nadu liquor scam: Madras High Court rejects former minister Senthil Balaji's anticipatory bail

The Madras High Court on Thursday dismissed the anticipatory bail plea of influential DMK leader and former minister V Senthil Balaji, increasing the likelihood of his arrest in the Rs 1,000 crore Tamil Nadu liquor scam case registered by the Directorate of Vigilance and Anti-Corruption (DVAC).

The development has put the opposition DMK on the backfoot, while giving the ruling Tamilaga Vaetrikal Katchi (TVK) an opportunity to launch political attacks ahead of the budget session starting August 5.

Justice G K Ilanthiraiyan, allowing the prosecution's contention that the investigation is at a nascent stage and custodial interrogation of the accused is necessary, dismissed Senthil Balaji's anticipatory bail plea, considering the large-scale corruption allegations in the case.

The court also noted that according to the prosecution, the accused had misused his official position and caused huge loss to the state exchequer.

Senthil Balaji, the current MLA from Coimbatore South, approached the court after the DVAC registered a case against him and six others on Tuesday. They have been accused of committing large-scale irregularities in the state-run Tamil Nadu State Marketing Corporation (TASMAC) between 2021 and 2025, when Senthil Balaji held the portfolios of Prohibition and Excise, and Electricity.

According to the DVAC's FIR, Senthil Balaji, as a minister, had conspired with six others, including private individuals, distillery and brewery companies, bottling and transport companies, and some TASMAC officials, to commit large-scale misappropriation of public funds and later laundered the amount, causing huge loss to the state exchequer.

Senthil Balaji argued in court that he is innocent and the case has been registered by the ruling party as political vendetta in the backdrop of the Coimbatore blast incident in which 41 people were killed last September. He claimed that the prosecution has not provided details of any specific tender or contract, and the case has been registered immediately after a case of alleged purchase of MLAs was filed against him, which proves political animosity.

Senior counsel N R Elango, appearing for Senthil Balaji, argued that TASMAC is an autonomous body and the minister has no role in its day-to-day affairs or tender process, and hence, registering an FIR against him was not proper. He also stated that the Enforcement Directorate (ED) had raided TASMAC offices, and the matter is pending before the Supreme Court, which has granted an interim stay.

In response, state public prosecutor Janakiraman told the court that the Supreme Court's interim stay is only with regard to TASMAC, and it does not restrain the investigation against Senthil Balaji or other accused. He said the loss to the state exchequer could be more than Rs 1,000 crore and custodial interrogation of the accused is necessary based on the available evidence.

After conducting raids at 41 locations across the state, including places associated with Senthil Balaji in Coimbatore and his hotel room in Chennai, the DVAC registered cases against him and six others on Wednesday night.

Besides the former minister, former TASMAC managing director S Visakan, former senior regional managers T Rama Durai Marugan and A Panneerselvam, Senthil Balaji's former personal assistant Bhaskar, his close associate Rathish Raj Shamugavel, and Erode's K S Karthik alias Milanur Karthik have also been booked.

The DVAC is also investigating cases against various distillery and brewery companies, transport companies, bottling companies, some unknown government employees of TASMAC, and other individuals.