The Supreme Court is set to hear the pleas filed by Tamil Nadu Minister V Senthil Balaji and his wife, Megala, challenging the judgment of the Madras High Court, which ruled in favor of the Directorate of Enforcement (ED) being entitled to take Balaji into custody in connection with the cash-for-jobs scam. The matter will be heard on July 21, 2023, before a bench comprising Chief Justice DY Chandrachud, Justice PS Narasimha, and Justice Manoj Misra.

Senior Advocate Kapil Sibal, representing Balaji, emphasized the urgency of the case, stating that it had already gone through different opinions in the Madras High Court and could become irrelevant if not addressed immediately. The Solicitor General of India, Tushar Mehta, also informed the court that he had filed a Special Leave Petition (SLP) against the same order.

In their separate petitions, Balaji and his wife argue against the powers of the ED to take the accused into police custody beyond 24 hours under Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA). They contend that there is no provision allowing the ED to seek custody beyond the initial 24-hour period and that the ED's officers are not police officers, thereby not entitled to custody under Section 167 of the Criminal Procedure Code (CrPC).

Balaji's petition further challenges the Madras High Court's view, which allowed the period of custody to extend beyond 15 days from the date of arrest. The plea argues that any custody beyond this period should only be "otherwise than in the custody of police" as per Section 167 of CrPC.

The petitioners also raise concerns about the illegality of Balaji's arrest, as the ED allegedly failed to communicate the grounds of arrest and did not provide a prior notice as required by Section 41A of CrPC. They claim that the remand order suffered from non-application of mind by the sessions judge, who granted the remand.

The Madras High Court's decision was split between Justice Nisha Banu and Justice Bharatha Chakravarthy. Justice Banu held that the ED was not empowered to seek police custody under the PMLA, while Justice Chakravarthy maintained that the ED had the right to seek custody for further investigation. A third judge, Justice CV Karthikeyan, supported Justice Chakravarthy's view and ruled in favor of the ED, stating that the habeas corpus petition filed by Megala was not maintainable.

The case revolves around the arrest of Balaji by the ED on June 15, in connection with a cash-for-jobs scam dating back to his term as Transport Minister during the 2011-16 AIADMK government. The Supreme Court's earlier order set aside the Madras High Court's stay on the money laundering case proceedings against him. Balaji underwent heart surgery at a private hospital while under judicial custody.

With the Supreme Court scheduled to hear the petitions tomorrow, the outcome of the case could have significant implications for the powers of the ED in money laundering investigations.