DMK MLA and former Tamil Nadu minister V. Senthil Balaji on Friday, 31 July secured interim protection from arrest from the Supreme Court in a Directorate of Vigilance and Anti-Corruption (DVAC) case alleging large-scale corruption in the functioning of the Tamil Nadu State Marketing Corporation (TASMAC). A bench headed by Chief Justice of India (CJI) Surya Kant issued notice on Balaji's special leave petition challenging the Madras High Court's refusal to grant him anticipatory bail.

Key Conditions of the Stay

The Supreme Court bench made the arrest stay conditional on Balaji's full cooperation with the ongoing investigation. The court directed him to deposit his passport with the investigating officer, cooperate fully with the probe, and ensure that no witnesses are influenced during the pendency of the proceedings.

The matter has been posted for further hearing after three weeks. The bench stated: 'If he is guilty, he will have to face consequences,' signalling that the stay was not an exoneration but a procedural safeguard pending investigation.

What Happened in Court

Earlier in the day, Justice V. Mohana recused herself from hearing the matter. CJI Surya Kant subsequently informed the parties that the case would be taken up by a bench comprising himself and Justice Joymalya Bagchi, citing urgency.

Senior advocate Guru Krishnakumar, appearing for the Tamil Nadu government, opposed the grant of anticipatory bail, contending that the allegations involved a serious corruption case worth hundreds of crores of rupees. He also cited Balaji's criminal antecedents and raised the risk of evidence being destroyed.

When the state government expressed concern that custodial interrogation might be necessary, Justice Bagchi assured that the court would ensure Balaji's participation in the probe. 'If there is any breach or any perception of breach, come to us,' he told the Tamil Nadu government. Senior advocate Kapil Sibal had on Thursday mentioned the special leave petition for urgent listing before the CJI-led bench.

The Madras High Court's Ruling

The Supreme Court intervention came after the Madras High Court declined to grant Balaji pre-arrest bail. A single-judge bench of Justice G.K. Ilanthiraiyan had dismissed the anticipatory bail plea, holding that the gravity of the allegations warranted custodial interrogation. The court noted that the accused allegedly abused their official positions, entered into a criminal conspiracy, and caused substantial financial loss to the state exchequer.

The TASMAC Corruption Case

The case stems from an FIR registered by the DVAC on 28 July against Balaji and several others over alleged irregularities in TASMAC between 2021 and 2025, when he served as Minister for Electricity, Prohibition and Excise in the M.K. Stalin-led DMK government.

According to the prosecution, Balaji allegedly conspired with private individuals, distillery and brewery companies, transport contractors, bottling firms, and unidentified TASMAC officials to manipulate official processes, misappropriate public funds, and facilitate the laundering of illicit money, causing substantial losses to the state.

Balaji denied the allegations, contending before the Madras High Court that the FIR was based on vague and omnibus accusations without identifying any specific tender, contract, or transaction linking him to the alleged offences. He also claimed the case was politically motivated, registered due to hostility following the Karur stampede controversy.

What Happens Next

With the arrest stay in place, the DVAC probe is expected to continue with Balaji's cooperation. The Supreme Court will take up the matter again in three weeks, when it will assess compliance with the conditions imposed. Any breach of the court's directives could result in the stay being vacated.