The Income Tax Department has told the Madras High Court that an investment of ₹7.36 crore in Red Giant Movies disclosed by Udhayanidhi Stalin in 2021 is missing from his 2026 election affidavit..At the same time, the 2026 affidavit shows an investment of ₹2.63 crore in the same company in the name of his spouse, which was not disclosed earlier, the Department said. .In a counter-affidavit, the Department pointed to inconsistencies across election affidavits and financial records. It said that no conclusive finding can be made at this stage..The affidavit was filed on behalf of the Director General of Income Tax (Investigation), Tamil Nadu and Puducherry.It also flagged issues with loan disclosures. The 2026 affidavit mentions loans of ₹10 crore. The 2021 affidavit recorded about ₹11.06 crore. However, company financials show borrowings of around ₹17.69 crore. The Department told the Court that it cannot determine the exact figures without detailed records..It also noted that tax returns were filed in ITR-2 format. This format does not require a balance sheet. As a result, investments cannot be independently verified.The Department added that key records are not readily available. It said that audited financials for some entities are missing and that Stalin's spouse has not filed Income Tax returns for the relevant year..The response was filed in a plea filed by Chennai resident R Kumaravel, a voter from the Chepauk–Thiruvallikeni constituency, seeking a probe into alleged discrepancies in the assets declared by Udhayanidhi Stalin in his election affidavits for the 2021 Assembly elections and the upcoming 2026 polls.Stalin has declared assets of approximately ₹20.6 crore in his election affidavit, including ₹12.9 crore in movable assets and ₹7.7 crore in immovable assets. His disclosed income for 2024–25 stands at ₹10.4 lakh, while his spouse has reported income exceeding ₹2.9 crore.According to the plea, a comparative analysis of the affidavits filed in 2021 and 2026, read alongside records maintained by statutory authorities and corporate filings, revealed “material discrepancies” in disclosures.The petitioner alleged disappearance of previously declared assets, unexplained variations in loans, contradictions between affidavit disclosures and corporate records, and mischaracterisation of financial transactions..On April 15, the Madras High Court issued notice and sought a response from the Income Tax authorities in the plea..The case has now been adjourned by four weeks.
