The Income Tax Department has informed the Madras High Court that former Chief Minister Jayalalithaa’s imposing bungalow 'Veda Nilayam', in Poes Garden , Chennai, would be brought to auction if her legal heirs fail to clear income tax and wealth tax arrears of ₹13.69 crore with interest.
Senior standing counsel for the Income Tax Department, Srinivasan said the property was attached during Jayalalithaa’s lifetime. Income Tax arrears were due for various assessment years from 1991–92 to 2006–07, while wealth tax dues pertained to assessment years from 1992–93 to 2015–16. The department was entitled to recover the arrears along with applicable interest.
Jayalalithaa died on December 5, 2016. Subsequently, the High Court, in May 2020, declared her niece J. Deepa and nephew J. Deepak as her legal heirs. Following this declaration, the Income Tax Department decided to recover the tax dues from them and issued intimations in July and August this year.
Deepa approached the High Court challenging the August communication by filing a writ petition. On his part, Deepak had written to the department through his authorised representative on August 11, 2025, seeking an extension of time to pay his share of ₹6.75 crore towards the arrears. He later sent another letter on October 14, 2025, requesting permission to pay the outstanding amount in instalments.
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The Income Tax Department accepted his request and permitted him to pay ₹6.75 crore in six equal monthly instalments between October 2025 and March 2026. However,Deepak paid only ₹1.12 crore on October 15, 2025 and November 15, 2025. Of this amount, ₹62.50 lakh was paid by quoting his own PAN instead of Jayalalithaa’s PAN. Despite several reminders, the error in the challan had not been rectified, the standing counsel submitted.
Emphasising that the attachment of Veda Nilayam was effected during Jayalalithaa’s lifetime, Srinivasan told the court if the tax arrears were not paid by those having an interest in the property, the department would proceed against it and bring it to auction in accordance with the procedure laid down under the Income Tax Act.
Justice Saravanan has adjourned the hearing to February 18.
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