In a major development ahead of the Assembly elections, the Madras High Court on Wednesday ordered the Income Tax Department to carry out a preliminary investigation into alleged discrepancies in the asset declarations of deputy CM Udhayanidhi Stalin and submit a report within a set deadline.
A First Division Bench led by Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan directed the Director General of Income Tax (Investigation) to submit a report before the court by April 20, noting that the matter is urgent as elections are scheduled for April 23 and voters must have access to accurate details of candidates’ financial disclosures.
The petition has been filed by R Kumaravel, a resident of the Chepauk-Thiruvallikeni constituency, from where Udhayanidhi Stalin is seeking re-election.
Representing the petitioner, senior counsel V Raghavachari argued that a comparative examination of the affidavits filed by M K Stalin during the 2021 Assembly elections and those submitted in the current electoral cycle shows multiple inconsistencies.
He further contended that these discrepancies involve the omission of assets previously declared, unexplained changes in liabilities, inconsistencies in the reporting of financial transactions, and mismatches between election affidavit disclosures and corporate records.
The counsel argued that these issued raised serious concerns about transparency and accountability, particularly vis-a-vis democratic elections.
Appearing on behalf of the Election Commission of India, advocate Niranjan Rajagopalan said that although candidates are required, in line with Supreme Court directions, to make complete and truthful disclosures, Returning Officers are not empowered to independently verify the accuracy of every declaration at the stage of nomination.
He also pointed out that Section 125A of the Representation of the People Act, 1951, used for penalties in cases of false declarations, including imprisonment of up to six months, a fine, or both.
However, such action typically follows due legal process after elections.
The petitioner, however, maintained that his motive was not to initiate criminal proceedings but to ensure that voters are informed and aware of the correct financial details of candidates before polling.
The court has adjourned the matter to April 20, pending submission of the Income Tax Department’s report.
The Tamil Nadu Assembly elections are set to take place on April 23, with counting of votes and results scheduled for May 4, alongside those of Assam, Kerala, Puducherry, and West Bengal.
