Cash-for-jobs Scam: TN Minister Senthil Balaji Moves SC Against Madras HC Order

Tamil Nadu Minister V Senthil Balaji has filed a petition in the Supreme Court challenging the Madras High Court’s order, which allowed the Directorate of Enforcement (ED) to take him into custody in connection with the cash-for-jobs scam.

On July 14, 2023, the third judge of the Madras High Court ruled in favor of the ED, stating that the central agency is entitled to seek police custody of an accused in a money laundering case.

The matter was referred to Justice CV Karthikeyan as there was a split in the division bench of Justices Nisha Banu and Bharatha Chakravarthy. Justice Banu, while deciding a habeas corpus petition filed by Balaji’s wife Megala, held that the Enforcement Directorate does not have the powers to seek police custody under the Prevention of Money Laundering Act. On the other hand, Justice Bharatha Chakravarthy opined that the Habeas Corpus Petition is not maintainable, and the ED was entitled to police custody of the accused.

Justice Karthikeyan agreed with Justice Chakravarthy’s view, stating, “The fact that respondents (ED) can take custody for further investigation cannot be denied. The respondent, in this case, had a right to get custody. I would align my opinion with the reason given by Justice Bharatha Chakravarthy in this aspect.” He also concurred with Justice Chakravarthy that the habeas corpus petition in the current case was not maintainable as there was no illegality in Balaji’s arrest.

Senthil Balaji, who serves as the Minister of Electricity for the state of Tamil Nadu, was arrested by the ED on June 15 in connection with a cash-for-jobs scam during his tenure as Transport Minister in the 2011-16 AIADMK government. The arrest followed a Supreme Court order in May that set aside a direction of the Madras High Court staying the proceedings in the money laundering case against him.

On the day of his arrest, Balaji’s wife filed a habeas corpus petition before the High Court, asserting that his arrest and detention were illegal. The High Court denied him interim bail but allowed him to be shifted to Cauvery Hospital, a private hospital, after he complained of chest pain. He underwent heart surgery at the hospital while under judicial custody. Although the ED approached the Supreme Court against the Madras High Court’s order entertaining the habeas petition, the Top Court refused to interfere and decided to await the final decision of the High Court.