A three-judge bench comprising of CJI Chandrachud and others took note of the submissions and agreed to hear the plea on 20 July.
Published Jul 20, 2023 | 12:56 PM ⚊ Updated Jul 20, 2023 | 12:56 PM
ED alleges that Balaji "misused" his office for illegal gratification and "engineered" a job racket scam in the state transport undertakings during 2014-15. (Supplied)
The Supreme Court agreed to hear on Friday, 20 July, the pleas of Tamil Nadu Minister V Senthil Balaji and his wife Megala challenging the 14 July order of the Madras High Court which upheld his arrest by the Enforcement Directorate (ED) in a money laundering case.
A bench comprising Chief Justice DY Chandrachud and justices PS Narasimha and Manoj Misra took note of the submissions of senior advocate Kapil Sibal, appearing for the minister and his spouse, that the issue would become infructuous if not heard urgently.
Solicitor General Tushar Mehta, appearing for the anti-money laundering probe agency, opposed the submissions of Sibal seeking an urgent hearing, saying wrong facts have been narrated and the chief justice of the high court is yet to refer the matter to a division bench for further proceedings.
“If the bench seeks to list it tomorrow then I have no problem,” the law officer said.
“We will list it for hearing,” the bench said.
The minister and his wife have filed two separate petitions in the top court challenging the high court order that upheld his arrest by the ED in a money laundering case.
Besides upholding the arrest of the minister, the high court had also held as valid his subsequent remand in judicial custody by a sessions court in the money laundering case arising out of the alleged cash-for-jobs scam in the state’s Transport Department when he was the transport minister.
Balaji continues to be a minister without portfolio in the Tamil Nadu Cabinet, even after the state Governor had asked the government to dismiss him.
Justice CV Karthikeyan, who was named as a third judge by the high court to hear the habeas corpus petition of Senthil Balaji’s wife, following a split verdict delivered by a division bench, concurred with the conclusions arrived at by Justice D Bharatha Chakravarthy. Justice Chakravarthy had upheld Balaji’s arrest.
The third judge held the accused had no right to frustrate the investigation.
Justice Karthikeyan directed the registry to place the matter before Chief Justice SV Gangapurwala to refer it to the same division bench to determine the date on which the ED could take the custody of Senthil Balaji, who has undergone coronary bypass surgery, and to shift him from the hospital.
The ED arrested Balaji under the Prevention of Money Laundering Act (PMLA) in connection with the cash-for-jobs case. While being taken away, he complained of chest pain and was rushed to the Government Multi Super Specialty Hospital at Omandurar Estate in Chennai.
On 15 June, he was remanded in judicial custody by the principal sessions court and was allowed to continue his treatment at the hospital.
Meanwhile, Balaji’s wife Megala moved a habeas corpus petition in the Madras High Court and a division bench comprising Justices J Nisha Banu and D Bharatha Chakravarthy directed the minister be moved to a private hospital at his expense.
On 21 June, Balaji underwent a bypass surgery at the Kauvery Hospital. During his post-operative period, Balaji’s judicial custody was extended twice. The Principal Sessions Judge S Alli extended the custody via teleconferencing.
Meanwhile, the high court division bench gave a split verdict on the habeas corpus petition on 4 July. Justice Banu ordered to set Balaji at liberty, but Justice Chakravarthy differed.
In his order, Justice Chakravarthy directed: “Considering the fact that he has undergone surgery and he can continue to undergo the treatment at the Kauvery Hospital for a period of another 10 days from today or until discharge whichever is earlier. If he needs treatment even after the 10th day, the same shall be continued at the prison hospital, and his physician/surgeon can also visit him there and continue the treatment/follow up.”
Following the split verdict, the case was entrusted to a third Judge. Justice CV Karthikeyan, who heard the case, concurred with Justice Chakravarthy.
Since Balaji has been shifted to prison, ED sources said they would seek his custody in a few days.
Incidentally, Balaji was shifted to prison even as ED officials were searching the properties of Higher Education Minister K Ponmudy.
The case against Balaji dates back to November 2014, when the Metropolitan Transport Corporation advertised a recruitment drive to fill up various vacancies. Soon, allegations of corruption surfaced.
Balaji was then the transport minister in the AIADMK government. He joined the DMK only in 2018.
The first complainant was one Devasagayam, who claimed in October 2015 that he gave ₹2.6 lakh to Palani, a bus conductor, who promised his son a job in the Transport Corporation. Devasagayam claimed the conductor did not fulfil the promise nor returned his money. However, Balaji’s name did not figure in the complaint.
Balaji came into the picture when another man, Gopi, filed a similar complaint in March 2016.
The complainant said he had paid ₹2.4 lakh to two individuals, reportedly related to Balaji, for a conductor’s job. Gopi later approached the high court, accusing the police of inaction.
The court ordered the Crime Branch Assistant Commissioner to probe the case. The probe report, however, implicated only the 12 individuals mentioned in Devasagayam’s complaint. The report, submitted in 2017, excluded the minister and his relatives.
Meanwhile, more people came up with complaints. Transport Department employee V Ganesh Kumar alleged that the transport minister and three others had directed him to collect ₹95 lakh from job aspirants.
After he became a minister in the DMK-led government, his personal assistant Shanmugam and another man, R Sahayarajan, approached the victims with a compromise formula. However, the compromise move was seen as an admission of bribery, which caught the ED’s attention.
(With PTI inputs)
