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Udhayanidhi Stalin’s ₹7.3-crore investment missing in poll affidavit: I-T Department
In a “preliminary report”, the I-T Department said the missing disclosure relates to an investment in film production company Red Giant Movies.
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The Income Tax Department has told the Madras High Court that an investment of ₹7.36 crore disclosed by Udhayanidhi Stalin in his 2021 election affidavit does not find mention in his 2026 affidavit, raising questions over consistency in the financial disclosures made by the Tamil Nadu deputy chief minister ahead of the upcoming assembly polls.
In a “preliminary report” filed before a bench of Chief Justice S A Dharmadhikari and Justice G Arul Murugan, the I-T Department said the missing disclosure relates to an investment in film production company Red Giant Movies.
It said that Stalin declared an “investment of ₹7.36 crore in the film production company in 2021.” His 2026 affidavit however, “does not reflect this investment.” Instead, the latest affidavit records an investment of ₹2.63 crore in the same company in the name of his spouse Kiruthiga Udhayanidhi, it said.
The I-T Department said that while an inconsistency in the affidavit exists, “no conclusive findings” can be drawn at this stage. On Tuesday, it sought additional time to conduct a detailed verification, citing the unavailability of key financial documents, including “audited statements” of certain entities.
“It is submitted that the Income Tax Department has always endeavoured to adhere to the strict guidelines bestowed on us. It is further submitted that the petitioner’s claims in the writ petition need examination of relevant financial records which are not readily available now. In view of above submission, the Honourable High Court may please grant reasonable time to the Income Tax Department to verify the issues for which relevant financials are not readily available. The Income Tax Department requires further time for a detailed enquiry and verification”, it said.
The department also flagged discrepancies in loan disclosures by Stalin. While the 2026 affidavit reports loans of ₹10 crore, the 2021 affidavit recorded liabilities of about ₹11.06 crore. Company financials examined by the Department indicate borrowings of approximately ₹17.69 crore. The department told the court that reconciliation requires access to complete records.
It further said that the income tax returns filed by Stalin were in the “ITR-2 format,” which does not mandate disclosure of balance sheets, limiting independent verification of investments and liabilities. It also informed the court that Kiruthiga Udhayanidhi has not filed income tax returns for the assessment year 2025-26, making direct comparison of financial particulars difficult.
The report was filed in compliance with a previous direction issued by the Court on April 15 on a plea by Chennai resident R Kumaravel, a voter from the Chepauk–Triplicane Assembly constituency. On the day, the court also sought a response from Stalin. However, he is yet to submit his reply.
Senior advocate V Raghavachari, appearing for the petitioner, told the court that a comparison of the 2021 and 2026 affidavits revealed “serious discrepancies.” He alleged that previously declared assets had “disappeared from the affidavit this year,” and pointed to “unexplained variation in loans, and contradictions between affidavit disclosures and corporate filings.”
The petitioner also claimed that Stalin had not disclosed any transfer, sale, or restructuring to explain the change in investment in Red Giant Movies. He further pointed to inconsistencies in loan disclosures, stating that a loan of ₹11.06 crore reported in 2021 to Chennai-based firm Snow Housing was shown as ₹10 crore in 2026, without explanation on whether the balance was repaid, written off, or adjusted. He added that Snow Housing has not filed financial statements for three consecutive years after 2021-22.
In his 2026 affidavit, Stalin declared movable assets worth ₹12.92 crore and immovable assets worth ₹7.72 crore. In 2021, he declared movable assets of ₹21.13 crore and immovable assets of ₹6.54 crore.
The high court recorded the submissions and granted four weeks to the I-T department to file a detailed report.
