Udhayanidhi's Rs 7.36 crore Red Giant investment missing in 2026 affidavit, IT Department tells Madras HC

CHENNAI: The Income Tax Department has informed the Madras High Court that an investment of Rs 7.36 crore in Red Giant Movies, disclosed by Udhayanidhi Stalin in 2021, is missing from his 2026 election affidavit.

According to Bar and Bench, the Department also pointed out that the 2026 affidavit shows an investment of Rs 2.63 crore in the same company in the name of his spouse, which was not disclosed earlier.

In a counter-affidavit filed before the court, the department highlighted inconsistencies across election affidavits and financial records, adding that no conclusive finding can be made at this stage.

It further flagged discrepancies in loan disclosures, stating that while the 2026 affidavit mentions loans of Rs 10 crore, the 2021 affidavit recorded about Rs 11.06 crore, whereas company financials show borrowings of around Rs 17.69 crore.

The Department said it is unable to determine exact figures without detailed records and noted that tax returns were filed in ITR-2 format, which does not require a balance sheet, making independent verification of investments difficult.

It also stated that key records are not readily available, with audited financials for some entities missing and Stalin’s spouse not having filed Income Tax returns for the relevant year.

The response was filed in a plea by Chennai resident R Kumaravel, seeking a probe into alleged discrepancies in asset declarations made in the 2021 and 2026 election affidavits.

According to the affidavit, Udhayanidhi Stalin has declared assets of approximately Rs 20.6 crore, including Rs 12.9 crore in movable assets and Rs 7.7 crore in immovable assets. His disclosed income for 2024-2025 stands at Rs 10.4 lakh, while his spouse has reported income exceeding Rs 2.9 crore.