Supreme Court stays Senthilbalaji’s arrest in Tasmac corruption case

The Supreme Court on Friday (July 31, 2026) ordered that the arrest of former Tamil Nadu Minister for Prohibition, Electricity and Excise V. Senthilbalaji in a corruption case registered by the Directorate of Vigilance and Anti-Corruption (DVAC) “remain stayed”.

Rejecting the State’s arguments that the former DMK Minister might interfere with the investigation if he was out on bail, Justice Joymalya Bagchi said there had been a “significant change in the political climate now”. “The State is no longer under the so-called malefic influence of the petitioner [Mr. Senthilbalaji],” Justice Bagchi said.

Chief Justice of India Surya Kant, who headed the Bench, said the State must not be afraid of the former Minister trying to influence the probe or the witnesses.

The case came up in the morning before a three-judge Bench, but Justice V. Mohana chose to recuse. A Division Bench of Chief Justice Kant and Justice Bagchi reconvened at 1 p.m. for the brief hearing, which culminated in Mr. Senthilbalaji getting relief. The court also issued formal notice to the State.

It set conditions for Mr. Senthilbalaji, including the surrender of his passport to the investigating officer, not influencing witnesses, and fully cooperating with the probe.

The court gave the State liberty to approach the court for removal of protection against arrest at the “slightest hint” of misdoing on the side of Mr. Senthilbalaji.

Senior advocate Kapil Sibal, leading for Mr. Senthilbalaji, said the “State’s enthusiasm speaks volumes”. The former Minister, also represented by senior advocates Mukul Rohatgi and Amit Anand Tiwari, had appealed in the Supreme Court within hours of the Madras High Court dismissing his bail application on July 30. The High Court had concluded that the allegations against him warranted his custodial interrogation.

Mr. Sibal opened the submissions by terming the case “strange”. He said the FIR was registered on July 28 on the basis of a Directorate of Enforcement (ED) affidavit filed in the Supreme Court two years ago. He said the events alleged in the FIR had occurred between 2021 and 2025 when Mr. Senthilbalaji was a Minister.

“You must have done a preliminary inquiry and found that a prima facie case was made out before registering this FIR on events alleged to have occurred in 2021. But now he is no longer a Minister. You [the State] are the custodian of records now, and everything is broadly based upon documentary evidence,” the CJI said, questioning the DVAC on the need to arrest the former Minister.

Senior advocates Guru Krishnakumar and Siddharth Dave, along with Tamil Nadu Additional Advocate-General Haripriya Padmanabhan, for the State, countered that Mr. Senthilbalaji had successfully stalled investigations against him throughout his tenure in power. “If there is any further delay or indulgence for him, it may be very difficult for the prosecution. We may have a problem with evidence vanishing... And why should there be any anticipatory bail in a serious case of corruption? This is a huge scam,” Mr. Krishnakumar emphasised.

Mr. Krishnakumar said the DMK leader was trying to take advantage of a delay brought about by himself. “Today, he is trying to take advantage of his own wrong. He is saying that since nothing has happened for over four years, now no action should be taken.”

The Chief Justice, however, said jail would not serve anybody’s purpose. “Hold a scientific, objective, independent investigation. Find out the truth. If he is guilty, he will have to face the consequences. No one should escape,” the CJI said. Justice Bagchi said the court would ensure that Mr. Senthilbalaji did not “jump the investigation and go out of the country”. “If there is any breach or perception of breach, please come to us,” Justice Bagchi told the State.

The FIR has accused the former Minister and then officials of Tamil Nadu State Marketing Corporation Limited (Tasmac) of abusing their official position to enter into a criminal conspiracy from 2021 with distillery companies, bottle companies, their owners, and private individuals. The DVAC said the former Minister and others “laundered huge illicit money in Tasmac by various means of manipulation and favouritism in the decision-making processes of Tasmac in an organised manner by the nexus formed between the unauthorised power brokers backed by the political executives and senior level officials of Tasmac for deriving undue advantage and caused serious loss to the government exchequer”.