The Madras High Court has turned down the anticipatory bail plea filed by V Senthil Balaji, a former minister of Tamil Nadu and a member of the Dravida Munnetra Kazhagam (DMK), amid allegations of corruption associated with the Tamil Nadu State Marketing Corporation (TASMAC). The decision, rendered by Justice GK Ilanthiraiyan, comes as a significant development in the ongoing legal proceedings concerning alleged malpractices within TASMAC.
The case against Balaji, along with six others, was initiated by the Directorate of Vigilance and Anti-Corruption (DVAC) on Wednesday. It focuses on purported irregularities related to liquor procurement, transportation contracts, bar licenses, and other administrative activities within TASMAC during the period from 2021 to 2025. Balaji’s tenure as Tamil Nadu’s Minister for Prohibition and Excise coincides with part of this timeframe.
Following the filing of the First Information Report (FIR), DVAC officials executed searches at over 40 locations throughout Tamil Nadu, including Balaji’s residence in Karur. The searches extended to properties associated with his former aides and other individuals implicated in the case. Apart from Balaji, the FIR names former TASMAC Managing Director S Visakan, former senior regional managers T Ramadurai Murugan and R Panneerselvam, former personal assistant Bhaskar, alleged middleman Rathesh Raj Shanmugavel, and S Karthik.
The DVAC alleges that bar license tenders were subject to manipulation through practices such as cartelization, proxy ownership, and the issuance of consecutively numbered demand drafts. Furthermore, Rathesh Raj is accused of wielding excessive influence over TASMAC operations, impacting the approval of liquor brands, the transfer of officials, and the allocation of bar licenses. It is claimed that Visakan followed Rathesh Raj’s directives, purportedly originating from Balaji.
The investigation also highlights a group termed the “Karur Gang” by the DVAC. Allegations extend to the generation of unaccounted cash by certain distilleries through inflated invoices for used liquor bottles, with the proceeds allegedly funneled as kickbacks to TASMAC officials for preferential supply orders.
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The FIR details further wrongdoing, asserting that TASMAC outlets collected amounts exceeding the maximum retail price, with customers reportedly charged an additional ₹10 to ₹100 for various liquor brands and up to ₹500 extra for foreign liquor.
Accusations also pertain to irregularities in the awarding of transportation contracts, where the DVAC claims that there was misuse of earnest money deposit demand drafts and a circumvention of mandated tender procedures.
In response to the allegations, Balaji has denied any misconduct, asserting his intention to challenge the legal proceedings through appropriate channels.
