The Supreme Court on Friday stayed the arrest of Dravida Munnetra Kazhagam MLA V Senthil Balaji in a corruption case linked to the Tamil Nadu State Marketing Corporation, or Tasmac, subject to his cooperation with the investigation, Live Law reported.

Tasmac is a government-owned company that has a monopoly over the wholesale and retail sales of alcoholic beverages in the state.

A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi passed the interim order while hearing the MLA’s appeal against the Madras High Court’s decision on Thursday to deny him anticipatory bail.

However, the bench directed him to surrender his passport and barred him from influencing witnesses or tampering with evidence, the legal news outlet reported.

The chief justice questioned the state’s counsel on why custodial interrogation was necessary when the case was largely based on documentary evidence.

The counsel argued that the allegations relate to incidents between 2021 and 2025 and claimed that Balaji, who was a minister at the time, prevented the registration of a first information report. However, the court highlighted that Balaji was no longer a minister.

The Tamilaga Vettri Kazhagam formed the government in Tamil Nadu in May following the state Assembly elections.

The bench said that with the change in government in Tamil Nadu, there was little reason for the state to fear that Balaji would influence the course of the investigation, The Hindu reported.

On July 28, the Directorate of Vigilance and Anti-Corruption registered the FIR against Balaji and others for alleged irregularities in Tasmac’s functioning between 2021 and 2025. Balaji was serving as the minister for electricity and prohibition and excise at the time.

The case relates to alleged irregularities in liquor procurement, transport contracts, bar licences and other administrative decisions during this period, Bar and Bench reported.

The FIR invoked provisions of the Indian Penal Code, the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act, Law Live reported.

Balaji has been accused of conspiring with six others, including private individuals, liquor manufacturers, transport and bottling firms, and Tasmac officials. They are accused of misusing their positions, forging documents and misappropriating public funds, allegedly causing losses to the public exchequer.

Edited by Sara Varghese.

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