Amid Jana Nayagan Delay, TVK Chief Vijay Faces Another Setback As Madras High Court Upholds Rs.1.5 cr Income Tax Penalty, Dismisses Plea

The Madras High Court has delivered a setback to actor and Tamilaga Vettri Kazhagam (TVK) leader Vijay after dismissing his challenge against a ₹1.5 crore penalty imposed by the Income Tax Department. In a separate development, the court has also reopened proceedings related to the certification of his upcoming film Jana Nayagan, adding fresh uncertainty to its release.

Madras HC Upholds Income Tax Penalty

Justice Senthilkumar Ramamoorthy dismissed Vijay’s writ petition contesting the penalty levied for failing to voluntarily disclose additional income amounting to ₹15 crore. The undisclosed income came to light following a search-and-seizure operation conducted by the Income Tax Department in September 2015, shortly after the release of Vijay’s film Puli.

The court ruled that the disclosure could not be considered voluntary, as it was made only after the department detected discrepancies during its investigation. Upholding the penalty, the judge observed that the tax liability arose directly from findings during the raid, making Vijay liable under the applicable provisions of the Income Tax Act.

‘Jana Nayagan’ Certification Dispute Reopened

In a parallel legal development, the Madras High Court on January 27 set aside an earlier single-judge order that had directed the Central Board of Film Certification (CBFC) to grant a U/A certificate to Vijay’s film Jana Nayagan. The division bench allowed an appeal filed by the CBFC, noting procedural lapses in the earlier ruling.

The bench observed that the single judge should have granted sufficient time to the CBFC to file its counter-affidavit before passing the order granting certification. As a result, the matter has now been remanded to the single-judge bench for fresh consideration.

Matter Sent Back For Fresh Hearing

The division bench, comprising Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murugan, clarified that the film’s producer, KVN Productions, is free to amend the prayer in its writ petition. The decision came a week after the court had reserved its order on the CBFC’s appeal.

The case follows an earlier single-bench judgment that had directed the CBFC to issue a ‘U/A 16+’ certificate to the film, offering temporary relief to the producers. With the order now set aside, the film’s certification and its release timeline remain uncertain. Sources indicate that the producers may consider approaching the Supreme Court to challenge the latest ruling.

(Via Agency Inputs)

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