Baalu was centre of a controversy involving illicit allocation of gas to his family owned King Chemicals and King Hi Power in 2004. In 2010, there were widespread protests by the local farmers against the Baalu's family owned industrial alcohol distillery in Vadaseri, a village in Thanjavur district against the establishment of it would reduce the ground water supply in the region. Internal rivalry in the DMK party emerged between Baalu and S.S. Palanimanickam, the MP from Thanjavur constituency and the district secretary of the DMK in Thanjavur, in 2012, when Baalu initiated a survey for railway lines in Thanjavur district.