Madras High Court Upholds ₹1.5 Crore IT Penalty Against TVK Chief Vijay

The Madras High Court delivered a major setback to popular actor and Tamil political party Vetri Kazhagam (TVK) president Vijay . The court dismissed his petition challenging a ₹1.5 crore penalty imposed by the Income Tax Department. The bench also issued crucial orders regarding the censor certification dispute over his film Jana Nayakan.

During the release of Vijay’s film Puli in September 2015, IT officials conducted raids at his residences and offices. The authorities found that he had failed to declare approximately ₹15 crore in additional income. Based on this, the IT Department imposed a penalty of ₹1.5 crore. Vijay challenged the penalty in the High Court. Hearing the case, Justice Senthil Kumar Ramamoorthy noted that Vijay had not voluntarily disclosed the income and that it came to light only because of IT raids. The court upheld the penalty.

The High Court also addressed the censor certification for Vijay’s latest film, Jana Nayakan. Previously, a single-judge bench had ordered a U/A certificate for the film. However, the Division Bench of the Madras High Court, comprising Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan , set aside that order, observing that the single judge had issued the directive without giving the Censor Board adequate opportunity to present its arguments. The Division Bench has now referred the case back to the single-judge bench, directing that a fresh hearing take place only after the Censor Board submits its counter-affidavit. The court also allowed the producers, KVN Productions , the opportunity to amend their submissions if necessary.

The film was originally scheduled for release on January 9. The single-judge bench’s earlier directive to issue a U/A 16+ certificate had provided relief to the producers. However, with the Division Bench setting aside that order, the release may face further delays. Reports indicate that the producers are considering approaching the Supreme Court to challenge the High Court’s decision. As a result, Vijay faces setbacks on the same day both in his personal tax matters and in the legal battle affecting his film’s release, generating significant discussion in political and film circles.