Madras HC dismisses anticipatory bail petition of DMK leader Senthil Balaji in TASMAC case

CHENNAI: The Madras High Court on Thursday dismissed the anticipatory bail petition of former minister, DMK leader V Senthil Balaji in the Directorate of Vigilance and Anti-Corruption's TASMAC scam case.

Citing the prosecution's allegation of causing loss to the exchequer against Senthil Balaji, Justice GK Ilanthiraiyan said custodial questioning is necessary.

In his order, the judge said all the officials, who were close associates of Accused-1 Senthil Balaji, abused their official position and entered into a criminal conspiracy and committed the offences.

By various means of manipulation, they obtained undue advantage and caused huge loss to the public exchequer, the judge added.

The DVAC in its FIR stated that Senthil Balaji entered into a criminal conspiracy to manipulate TASMAC's functioning by rigging bar and transport tenders, favouring few select liquor manufacturers, resulting in overpricing of liquor, and causing financial loss to the public exchequer.

The DVAC registered an FIR against seven accused.

The FIR against Senthil Balaji, former TASMAC Managing Director S Visakan and five others was for alleged misappropriation, manipulation of procurement and tender processes in allotting bar licences, transport tenders, and bogus and inflated transactions by certain distilleries and bottling firms.

Senthil Balaji's close associates Rathesh Raj Shanmugavel and S Karthik (alias Mulanoor Karthik), his former personal assistant Bhaskar, former TASMAC officials R Ramadurai Murugan and R Paneerselvam were the five other accused persons.

The FIR highlighted the operation of an alleged organised syndicate known as the "Karur gang", allegedly controlled by Karthik.

Allegedly, the syndicate ran all liquor bars in Karur district and coerced officials into allotting bar licenses across Tamil Nadu to their favoured candidates.

The FIR also states that the investigators uncovered extensive fraud in transport tenders awarded for 45 TASMAC depots.

In one instance, 9 out of 16 EMD Demand Drafts submitted by an applicant were illegally retained and reused by Senior Regional Managers to improperly grant transport depot contracts to rival firms.

The FIR also detailed a systematic cash-kickback scheme involving tens of crores, where bottle supply companies generated bogus or inflated invoices for distilleries.

TASMAC retail shops systematically collected excess amounts over the Maximum Retail Price (MRP) from consumers in an organised manner, overcharging between Rs 10 and Rs 100 for standard liquor and up to Rs 500 for foreign liquor, the FIR stated.

The case has been registered under Sections 120B, 167, 409, 109, and 420 of the IPC, corresponding provisions of the Bharatiya Nyaya Sanhita (BNS), 2023 (including Sections 61(2), 201, 316(5), 49, and 318(4)), and Sections 7(c), 12, 13(1)(a), and 13(2) of the Prevention of Corruption Act, 1988 (as amended in 2018).

After deducting a commission, supplier firms returned illicit cash to distilleries, which was then used to pay kickbacks to TASMAC officials to secure liquor supply orders.

According to the DVAC, private individual Rathesh Raj Shanmugavel functioned as an unauthorised power broker in Tamil Nadu's liquor administration ecosystem.

According to the investigators, acting on instructions from Senthi Balaji, Shanmugavel directed Visakan on key administrative decisions, including liquor brand approvals, bar tender manipulation, and official transfers.

Senthil Balaji represents Coimbatore South in the Tamil Nadu Assembly.