MHC directs DGIT, MCA to respond on plea seeking probe into Udhayanidhi Stalin’s asset disclosures

CHENNAI: The Madras High Court directs the Director General of Income Tax (Investigation) and the Union Ministry of Corporate Affairs to file a response on a writ plea seeking a probe into asset disclosures made by Deputy CM Udhayanidhi Stalin in his election affidavit.

R. Kumaravel, 56, a resident of Chepauk-Triplicane Assembly constituency had filed the writ petition in Madras High Court. In this petition he stated that a comparative analysis of the election affidavits filed by the Deputy Chief Minister Udhayanidhi Stalin during 2021 and 2026 reveal disappearance of previously declared assets, unexplained variation in loans, mischaracterisation of financial transactions, and contradictions between affidavit disclosures and corporate filings.

The petitioner said, Udhayanidhi had declared to have invested Rs 7.36 crore in Red Giant Movies in 2021 but such investment was completely absent in his 2026 affidavit. Instead, the latest affidavit claims that his spouse had invested Rs 2.63 crore in the company involved in film production and distribution. “This transition is neither explained nor supported by any disclosure of transfer, sale, divestment, or restructuring,” he complained.

Further, claiming that the 2021 election affidavit of the Deputy Chief Minister had disclosed that he had advanced a loan of Rs 11.06 crore to Snow Housing Private Limited, the petitioner said, the 2026 affidavit reflected the loan amount to be only Rs 10 crore without any explanation whatsoever as to whether the rest of Rs 1.06 crore had been repaid, converted, or otherwise adjusted.

He also said, the Deputy Chief Minister had a relatively modest income aggregating to approximately Rs 2.02 crore over a period of five years prior to 2020 whereas the subsequent years reflect a sharp increase in income, aggregating to over Rs 10.98 crore. 

Asserting that false or incomplete disclosure of assets by the candidates contesting in elections not only violates the statutory provisions under the Representation of the People Act of 1951 but also directly impairs the fundamental right of voters to be fully informed, the petitioner sought a direction to the DGIT (Investigation) and the Ministry of Corporate Affairs to conduct a comprehensive inquiry into the issue.

The petition came up for hearing before a Division Bench comprising Chief Justice S.A. Dharmadhikari and Justice G. Arul Murugan. The Election Commission of India submitted that appropriate action would be taken under the Representation of the People Act if any false affidavit is established. It further contended that since the election process has already commenced, the petitioner should file an election petition.

After hearing the submissions, the Bench directed the Director General of Income Tax (Investigation) and the Union Ministry of Corporate Affairs to file their responses. The matter has been adjourned to April 20.