Madras High Court rejects Senthil Balaji’s anticipatory bail plea in TASMAC corruption case

The Madras High Court on Thursday rejected an anticipatory bail application filed by former Tamil Nadu minister and Dravida Munnetra Kazhagam (DMK) MLA V Senthil Balaji in a corruption case concerning alleged irregularities in the functioning of the Tamil Nadu State Marketing Corporation (TASMAC).

Justice GK Ilanthiraiyan passed the order.

A copy of the order is yet to be made available.

The Directorate of Vigilance and Anti-Corruption (DVAC) registered the case against Balaji and six others on Wednesday. It concerns alleged irregularities in liquor procurement, transport contracts, bar licences and other administrative decisions within TASMAC between 2021 and 2025.

Balaji had served as Tamil Nadu’s Minister for Prohibition and Excise during part of this period.

Following the registration of the First Information Report (FIR), DVAC officials conducted searches at more than 40 locations across Tamil Nadu, including Balaji’s residence in Karur and premises linked to his former aides and other accused persons.

Apart from Balaji, the case names former TASMAC Managing Director S Visakan, former senior regional managers T Ramadurai Murugan and R Panneerselvam, Balaji’s former personal assistant Bhaskar, alleged middleman Rathesh Raj Shanmugavel and S Karthik.

According to the DVAC, bar licence tenders were allegedly manipulated through cartelisation, proxy ownership and the use of consecutively numbered demand drafts.

The agency has alleged that Rathesh Raj exercised undue influence over TASMAC’s operations, including approval of liquor brands, transfers of officials and allotment of bar licences. Visakan allegedly acted on Rathesh Raj’s directions, which were said to have originated from Balaji.

The FIR also refers to a group described by investigators as the “Karur Gang”.

The agency has further alleged that certain distilleries generated unaccounted cash by inflating invoices relating to used liquor bottles. The money was allegedly paid as kickbacks to TASMAC officials in return for favourable supply orders.

The FIR also contains allegations that TASMAC outlets collected amounts above the maximum retail price. According to the agency, customers were charged between ₹10 and ₹100 above the prescribed price for several liquor brands and as much as ₹500 extra for foreign liquor.

Irregularities have also been alleged in the award of transport contracts. The DVAC claims that earnest money deposit demand drafts were misused and prescribed tender procedures were bypassed.

Balaji has denied wrongdoing and said that he would contest the proceedings in accordance with law.