Jayalalithaa's Poes Garden Residence Faces Auction Over Rs 20 Crore Tax Dues
The Income Tax Department has issued a stern warning that properties belonging to former Tamil Nadu Chief Minister J Jayalalithaa, including her iconic Poes Garden residence in Chennai, will be put up for auction if her legal heirs fail to settle outstanding tax dues amounting to approximately Rs 20 crore. This significant development emerged during proceedings at the Madras High Court on Thursday.
Legal Heirs Given Final Opportunity to Pay Dues
Senior standing counsel for the Income Tax Department, A P Srinivas, informed the court that the attachment of Jayalalithaa's properties was initiated during her lifetime. The department has now clarified that if the tax arrears are not paid by those with interests in the late chief minister's properties, authorities will proceed with auctioning the assets as per the Income Tax Act provisions.
The case came before Justice C Saravanan, who adjourned the hearing to February 2, giving the legal heirs additional time to respond to the department's demands.
Breakdown of Tax Dues and Legal Position
According to official documents presented in court:
- The total demand under both income tax and wealth tax assessments stands at Rs 13.69 crore as communicated on August 4, 2025
- The latest income tax demand, including tax and Rule V interest as of January 31, amounts to Rs 9 crore
- Wealth tax dues total Rs 11.08 crore
- Rule 5 of the Income Tax Rules interest continues to accrue on the outstanding amount until full payment is made
Srinivas emphasized that under Section 159 of the Income Tax Act, the liabilities of a deceased assessee must be discharged by legal representatives to the extent that the deceased's estate can meet these obligations. He further noted that no limitation period applies to the recovery of tax demands once they have been formally raised by the department.
Background of the Legal Dispute
The current proceedings stem from a plea filed by Jayalalithaa's niece, J Deepa, challenging a demand notice issued by the Income Tax Department on August 4, 2025. The department has communicated the tax demand to both Deepa and her brother, J Deepak, who are the legal heirs to Jayalalithaa's estate.
This is not the first legal confrontation between the heirs and tax authorities. In a separate matter concerning the acquisition of 'Veda Nilayam' for conversion into a memorial, the Madras High Court had previously ruled on November 24, 2021, that the Income Tax Department could proceed with recovering any tax arrears payable by Jayalalithaa that are legally chargeable against her estate.
The department has expressed frustration with the legal heirs' approach, stating that despite inheriting Jayalalithaa's estate, Deepa and Deepak have repeatedly filed writ petitions instead of settling the outstanding tax liabilities, including challenges to routine tax due intimation letters.
The potential auction of Jayalalithaa's properties, particularly her historic Poes Garden residence, represents a significant development in the ongoing settlement of the late leader's financial affairs and could have substantial implications for her legacy and estate management.
