The Income Tax Department has highlighted discrepancies in Udhayanidhi Stalin’s election affidavits, specifically related to investments, loans, and financial disclosures during the 2021 and 2026 Assembly polls. In a recent court filing, it was noted that an investment of ₹7.36 crore in Red Giant Movies, mentioned in the 2021 affidavit, was missing from the 2026 declaration. However, the latest filing includes a ₹2.63 crore investment in the same company under Stalin’s spouse’s name, which was not previously disclosed.
The Department pointed out these inconsistencies, along with other financial record variations, which complicate reaching definitive conclusions at this stage. Questions were also raised about loan disclosures, with the 2026 affidavit showing loans of ₹10 crore compared to liabilities of ₹11.06 crore in 2021. Despite company financial statements indicating borrowings of about ₹17.69 crore, the Department emphasized the challenge of accurate reconciliation without complete records.
Moreover, the Department highlighted that the Income Tax returns were filed using the ITR-2 format, which does not mandate a balance sheet submission, limiting independent verification of investments and liabilities. The affidavit also noted gaps in documentation, such as missing audited financial statements for certain entities, and highlighted that Stalin’s spouse had not filed Income Tax returns for the relevant assessment year, restricting scrutiny of related financial entries.
A petition filed by a Chennai-based voter, R. Kumaravel, from the Chepauk–Thiruvallikeni constituency, seeking a thorough investigation into alleged discrepancies in Stalin’s asset declarations, prompted the court proceedings. The petition points out inconsistencies between affidavits and corporate records, including discrepancies in declared assets and unexplained variations in liabilities. Following a notice issued to the Income Tax Department on April 15, the High Court has adjourned the matter for four weeks.
