Money laundering case: Supreme Court dismisses TN minister Senthil Balaji's pleas, grants ED custody

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The Supreme Court on Monday rejected the pleas of Tamil Nadu minister V Senthil Balaji and his wife Megala, challenging the Madras High Court's decision to uphold his arrest in a money laundering case. The apex court also granted the Enforcement Directorate (ED) five days of custody for Balaji, extending until August 12th.

A bench composed of Justices A S Bopanna and M M Sundresh also referred the matter of permissible police custody duration beyond the initial 15 days of remand to a larger bench. The court clarified that a writ of habeas corpus could not be used against an arrest by the ED, and remand orders could not be contested through such a plea.

Despite his June 14th arrest, Balaji remains a minister without portfolio in the Tamil Nadu government. He and his wife challenged the Madras High Court's decision that supported his arrest by the probe agency in connection with a money laundering case linked to an alleged cash-for-jobs scam in the state's transport department.

The ED had claimed that Balaji was obstructing the agency's right to conduct custodial interrogation, which would reveal the truth behind the cash-for-jobs scam. The Supreme Court reserved its order on August 2nd after hearing arguments from Solicitor General Tushar Mehta, representing the ED, and senior lawyers Kapil Sibal and Mukul Rohatgi, who represented Balaji and his spouse.

In response to the arguments made by Sibal and Rohatgi, the solicitor general asserted that the ED was fully authorized under section 167 of the Code of Criminal Procedure (CrPC) to seek custodial interrogation of an accused. Rohatgi reiterated that ED officials are not police officers and emphasized that the agency doesn't possess an inherent right to interrogate an accused in its custody under the Prevention of Money Laundering Act (PMLA).

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During previous proceedings, the accused's legal representatives strongly contended that the provision under the PMLA could not be used by the ED to demand custodial interrogation. Sibal maintained that the authority to make an arrest under the PMLA shouldn't be confused with the authority to request police remand, referring to a 2022 judgment by the apex court.

The minister's counsel argued that once the 15-day period from the arrest date has lapsed, the investigating agency cannot insist on custodial interrogation, as it's not permitted by law. The solicitor general highlighted the urgency of the case, pointing out that the probe agency only has until August 13th to question the minister in custody. According to section 167 of the CrPC, the agency has 60 days to conclude the investigation and file the charge sheet, which ends on August 13th.

On July 21st, the top court sought the ED's response to petitions filed by Balaji and his wife challenging the Madras High Court's July 14th order upholding his arrest in the money laundering case. The minister and his wife had separately appealed to the Supreme Court against the high court's ruling. Along with validating the minister's arrest, the high court also affirmed his subsequent remand in judicial custody by a sessions court. The case originates from an alleged bribery scam in the state's transport department, where Balaji was previously the transport minister. The complainant alleged that he had paid Rs 2.40 lakh to secure a job in a state-run transport corporation. The high court, in its order, recognized this payment as a specific offense of bribery, leading to the ED's registration of the Enforcement Case Information Report (similar to an FIR). Subsequently, the ED arrested Balaji. (PTI)