The Madras High Court has been informed by the Income Tax Department of discrepancies in the financial disclosures of Udhayanidhi Stalin across his election affidavits filed in 2021 and 2026, as reported in Bar and Bench.
In a counter-affidavit submitted before the Court, the Department stated that an investment of ₹7.36 crore in Red Giant Movies, which was disclosed by Stalin in his 2021 affidavit, is missing from his 2026 election affidavit. At the same time, the 2026 affidavit reflects an investment of ₹2.63 crore in the same company in the name of his spouse, which had not been disclosed earlier.
The affidavit, filed on behalf of the Director General of Income Tax (Investigation), Tamil Nadu and Puducherry, pointed to inconsistencies across election affidavits and financial records. It noted that “no conclusive finding can be made at this stage.”
The Department also flagged discrepancies relating to loan disclosures. While the 2026 affidavit mentions loans amounting to ₹10 crore, the 2021 affidavit had recorded approximately ₹11.06 crore. However, company financial statements indicate borrowings of around ₹17.69 crore. The Department informed the Court that it is unable to determine the exact figures in the absence of complete records.
Further, the Department highlighted that the income tax returns were filed using the ITR-2 format, which does not require submission of a balance sheet. As a result, the investments declared in the affidavits cannot be independently verified.
It also noted that certain key records are not readily available. According to the filing, audited financial statements for some entities are missing, and Stalin’s spouse has not filed Income Tax returns for the relevant assessment year.
The response was filed in connection with a plea submitted by R Kumaravel, a Chennai resident and voter from the Chepauk–Thiruvallikeni constituency, who sought a probe into alleged discrepancies in the assets declared by Udhayanidhi Stalin in his election affidavits for the 2021 Assembly elections and the upcoming 2026 polls.
According to the plea, a comparative analysis of the affidavits filed in 2021 and 2026, when read alongside records maintained by statutory authorities and corporate filings, revealed “material discrepancies” in disclosures. The petitioner alleged disappearance of previously declared assets, unexplained variations in loan figures, contradictions between affidavit disclosures and corporate records, and mischaracterisation of financial transactions.
In his 2026 election affidavit, Stalin has declared total assets of approximately ₹20.6 crore, including ₹12.9 crore in movable assets and ₹7.7 crore in immovable assets. His disclosed income for the financial year 2024–25 stands at ₹10.4 lakh, while his spouse has reported income exceeding ₹2.9 crore.
On 15 April 2026, the Madras High Court issued notice and sought a response from the Income Tax Department in the matter. The case has since been adjourned by four weeks.
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