Facing SC heat in ED case, TN Minister Senthil Balaji set to resign

Tamil Nadu is expected to undergo a Cabinet reshuffle in the coming days, triggered by mounting legal and political pressure on the DMK government.

TN Minister V Senthil Balaji, holding electricity, prohibition, and excise portfolios, is set to resign following a Supreme Court ultimatum on April 23. Hearing an Enforcement Directorate (ED) plea to cancel Balaji’s bail in a money-laundering case tied to a ‘cash-for-jobs’ scam, the apex court directed him to choose between his ministerial post and his freedom by April 28.

Also read: 3 DMK ministers face judicial heat over corruption, misconduct, hate speech

Flak from SC

Balaji, a senior DMK leader, was granted bail on September 26, 2024, after over a year in judicial custody, citing trial delays and his rights under Article 21. However, his reinstatement as a minister on September 29, 2024, by Chief Minister MK Stalin drew sharp criticism from the Supreme Court. Justices Abhay S Oka and Augustine George Masih called the move “absolute dishonesty”, warning that Balaji’s position could enable witness tampering, given prior findings of investigative obstruction. With the court highlighting the case’s 1,000 witnesses, Balaji is reportedly inclined to resign to protect his bail.

Party sources revealed that the DMK high command held extensive deliberations with a senior lawyer, who strongly advised Balaji to resign from his post amid the Supreme Court’s deadline in the case. Despite this, the DMK appears unwilling to sideline Balaji politically, with plans to elevate him as the Kongu region (western zone) in-charge, replicating the strategy of former Chief Minister M Karunanidhi when he appointed his son MK Alagiri as the southern zone head.

Adding to the reshuffle speculation, sources indicate that Stalin is considering removing Forest Minister K Ponmudy from the cabinet. Ponmudy has drawn flak from the court over alleged hate speech, raising questions about his continuance.

Plum portfolios?

Following Balaji’s arrest by the ED in 2023, his Tamil Nadu Electricity Board (TNEB) portfolio was temporarily assigned to Finance Minister Thangam Thennarasu, while prohibition and excise (Tasmac) portfolio went to Minister S Muthusamy. However, party sources indicate that a similar arrangement is unlikely this time due to shifting dynamics and concerns over ED scrutiny.

Also read: Tasmac continues to power TN's treasury with Rs 48,344 cr tax revenue in FY25

Once considered a lucrative “cash cow,” the excise portfolio has lost its allure, with ministers wary of its association with ED probes and potential legal tangles. A senior DMK minister revealed that no one is keen to take charge of Tasmac, citing the risks of investigation and reputational damage. The portfolio’s diminished appeal reflects the growing caution among leaders.

Similarly, Thangam Thennarasu, who previously managed TNEB, is reportedly reluctant to resume responsibility for it, citing the portfolio’s demanding nature as an additional burden. Thennarasu’s hesitation has opened the door for other contenders – PTR Palanivel Thiaga Rajan (PTR) or I Periyasamy. Speculation is rife that the prohibition and excise portfolio may go to either S Muthusamy or Vellakovil Swaminathan, both seen as capable contenders. Additionally, the forest portfolio is expected to be entrusted to either PTR or Periyasamy.

Portfolio reallocation

Sources said that with Governor RN Ravi currently in Ooty, inducting new faces into the Tamil Nadu cabinet is not feasible. Moreover, with the state Assembly session concluding on April 29, 2025, the DMK government is unlikely to undertake major cabinet changes in the immediate term, opting instead for minimal adjustments to address the ongoing reshuffle prompted by Balaji’s impending resignation.

Also read: Tasmac 'scandal': TN minister Senthil Balaji denies allegations, says will fight legally

The reshuffle, driven by the Supreme Court’s ultimatum to Balaji to resign or risk losing his bail in a money laundering case, has placed the DMK leadership in a delicate position. With Balaji’s exit imminent, the allocation of his portfolios remains a contentious issue.