ED conducts searches in fresh probe against Tamil Nadu minister Senthil Balaji

The Enforcement Directorate has conducted searches at multiple locations in connection to money laundering allegations against Tamil Nadu Electricity Minister Senthil Balaji and others regarding Tamil Nadu's liquor trade monopoly.

The agency conducted searches in 10 locations across the state including the ones linked to Balaji, some government contractors and other entities. The investigation is regarding the alleged discrepancies in the Tamil Nadu State Marketing Corporation (TASMAC).

Cash for jobs scam

The ED has previously probed the connection of the DMK leader in a money-laundering investigation linked to the 'cash for jobs scam' in the state transport department. In September 2024, the Supreme Court granted bail to Balaji after more than 15 months in jail. Balaji had resigned from the Tamil Nadu government in mid-February after spending nearly seven months behind bars as a minister without any portfolios.

He was reinstated within three days of bail as the Minister for Electricity, Prohibition, and Excise within three days of bail. Before his arrest, he held the same portfolio from May 2011 to June 2023.

However, the SC raised concerns in December over the reinstatement of Tamil Nadu minister V Senthil Balaji days after he was released from jail on bail.

“We grant bail and the next day you go and become Minister. Anybody will be bound to be under the impression that now with your position as a senior cabinet minister witnesses will be under pressure. What is this going on?” the Bench said. But, refused to interfere with the September order that had granted bail to Balaji.

In the ‘cash for jobs scam,’ ED alleged irregularities in Tamil Nadu’s transport department during Balaji's tenure in 2011 and 2015 in the All India Anna Dravida Munnetra Kazhagam government. Balaji joined the DMK in December 2018 and assumed office as the Electricity Minister after the party came to power in May 2021.