₹13.69 Crore Tax Arrears Case Draws Madras High Court’s Attention

In the ongoing ₹13.69 crore tax arrears case, the Madras High Court has directed J. Deepa, the niece and one of the legal heirs of late Tamil Nadu Chief Minister Jayalalithaa, to implead her brother J. Deepak in her latest petition. The case concerns long-standing income tax and wealth tax dues related to the former Chief Minister’s estate.

The directive came from Justice C. Saravanan on October 15, 2025, during the hearing of a writ petition filed by Deepa, challenging the revised recovery notice issued by the Income Tax Department. The judge granted time till November 3 for Deepa’s legal team to include her brother as a respondent in the case, since both siblings had been declared the rightful legal heirs of Jayalalithaa’s properties.

 Revised Demand in ₹13.69 Crore Tax Arrears Case Adds Pressure on Legal Heirs

Initially, the Tax Recovery Officer had issued a demand for ₹36.56 crore on July 23, 2025, covering tax dues from the assessment years 1991-92 to 2011-12. This amount was later revised down to ₹13.69 crore in August 2025. Despite the reduction, the pressure remains on the heirs to settle the liabilities.

Deepa had previously filed a writ petition on August 7, 2025, arguing that tax notices issued in the name of a deceased individual were void. She maintained that she could not be held liable as an “assessee in default,” particularly when many appeals regarding her aunt’s tax matters were still pending.

However, after the revised notice was issued on August 4, 2025, the court considered her earlier petition to be no longer valid and dismissed it on September 18. She has now filed a second writ petition to contest the revised demand, again challenging the enforceability of the order on multiple legal grounds.

Deepa Claims Lack of Access to Documents Behind ₹13.69 Crore Tax Arrears Case

One of Deepa’s main arguments in the current petition is that she had no access to her aunt Jayalalithaa or her financial affairs until her death in December 2016. It was only in May 2020 that Deepa and her brother were officially declared as legal heirs by the Madras High Court.

The possession of Jayalalithaa’s Poes Garden residence was handed over to them much later, in December 2021. According to Deepa’s counsel, an inventory taken at the time of handover did not reveal any documents related to the former Chief Minister’s tax obligations.

When the court observed that Jayalalithaa’s chartered accountant might have held critical financial records or login credentials to the income tax portal, Deepa’s counsel informed that the accountant had passed away during the COVID-19 pandemic. This, they argued, further limited their ability to verify the tax claims being made against them.

Legal Heirs Face Mounting Responsibility in ₹13.69 Crore Tax Arrears Case

Justice Saravanan acknowledged that since both Deepa and Deepak are co-legal heirs, any legal proceedings around recovery of tax dues must involve both. The Income Tax Department also noted that while Deepa had filed a legal challenge, her brother had not objected to the recovery process so far.

Recognising this, the court ruled that Deepak should also be made a party to the current writ petition. This ensures that the case can proceed without the risk of being challenged later for lack of proper representation of all concerned parties. Also Read: Madras HC declares Jayalalithaa’s niece, nephew Class II legal heirs

Conclusion

The ₹13.69 crore tax arrears case continues to unfold as the legal heirs of late Chief Minister Jayalalithaa face complex questions over inherited liabilities. With Deepa now required to include her brother in the legal proceedings, the matter is set to gain further clarity in the coming weeks. All eyes are now on the next hearing scheduled after November 3, 2025.