Tamil Nadu late ex-CM J Jayalalithaa’s estate faces auction over Rs 20 cr tax arrears

CHENNAI: The income tax department informed Madras high court it will auction attached properties of former Tamil Nadu CM J Jayalalithaa, including her three-storey bungalow Veda Nilayam in Chennai’s Poes Garden, to recover over 20 crore in unpaid taxes if her legal heirs fail to clear the dues.

The department said Thursday it is seeking recovery of 9 crore in income tax arrears and Rs 11.08 crore in wealth tax, plus interest, from Jayalalithaa’s estate.

According to the tax authority, these figures are current as of Jan 31. Interest under income tax rules will continue to accrue until payment. The submission came in response to a petition by Jayalalithaa’s niece J Deepa challenging a notice issued on Aug 4, 2025, seeking 13.69 crore in tax arrears.

“The attachment of the property was done during the lifetime of Jayalalithaa. If the arrears of tax are not paid by the persons having interest in the properties of the late chief minister, the department will proceed against the property by bringing it to auction as per the Income Tax Act,” senior standing counsel AP Srinivas informed the court.

The department said both Deepa and her brother J Deepak were informed through a detailed communication last Aug.

Justice C Saravanan adjourned the matter to Feb 18. Citing section 159 of the Income Tax Act, Srinivas said liabilities of a deceased assessee must be discharged by legal representatives to the extent the estate can meet them.

He also pointed to a Nov 24, 2021, Madras high court order that allowed the IT department to recover any tax arrears chargeable on Jayalalithaa’s estate, even while Deepa and Deepak were challenging acquisition of Veda Nilayam for conversion into a memorial.

Jayalalithaa, who served six terms as CM and led AIADMK, stayed in Veda Nilayam for more than three decades until her death on Dec 5, 2016, at age 68.