The Income Tax Department has flagged discrepancies in the election affidavit of Udhayanidhi Stalin to the Madras High Court and said that an investment declared earlier does not appear in his latest disclosures for the 2026 polls. The Department pointed out that an investment of Rs 7.36 crore in Red Giant Movies, which was disclosed in Stalin’s 2021 election affidavit, is missing from the affidavit filed by him in 2026.
According to Stalin’s 2026 affidavit, Rs 2.63 crore investment has been made in the same company in the name of his spouse, which was not mentioned in the earlier filing. The department also informed the court about the inconsistencies in loan declarations.
While the recent affidavit reportedly mentioned loans of around Rs 10 crore, the 2021 affidavit had recorded Rs 11.06 crore. However, the company’s financial statements indicate borrowings of nearly Rs 17.69 crore. Officials told the court that without complete documents, it is difficult to arrive to a conclusion.
Assets and liabilities see marginal rise
A comparison of Stalin’s affidavits revealed a rise in both assets and liabilities over time. In 2021, the DMK candidate had declared total assets of about Rs 29 crore and liabilities of around Rs 1.35 lakh. In the 2026 affidavit, his total assets have increased to approximately Rs 33 crore, while liabilities have risen slightly to about Rs 1.55 lakh.
Lack of detailed financial records
In its counter-affidavit filed by the Director General of Income Tax (Investigation), Tamil Nadu and Puducherry, the Department said that the available data is insufficient for a definitive assessment. It also noted that Udhayanidhi Stalin’s tax returns were filed under the ITR-2 format, which does not require a detailed balance sheet, making independent verification of investments challenging.
It also pointed out that certain audited financial records are not readily available and that his spouse has not filed income tax returns for the relevant year.
Plea alleges ‘material discrepancies’
The incident came to light after a a petition was filed by Chennai-based voter R. Kumaravel from the Chepauk–Thiruvallikeni constituency. The plea alleged “material discrepancies” between Stalin’s 2021 and 2026 affidavits and cited missing assets, variations in loan figures, and inconsistencies with corporate filings.
Court seeks response, hearing adjourned
Earlier this month, the Madras High Court issued notice and sought a response from the tax authorities on the petition.
The case has now been adjourned for four weeks, with further proceedings expected after additional submissions are reviewed.