Jayalalithaa's Poes Garden home to be auctioned? Income Tax dept warns legal action if dues are not paid

Due to the death of Jayalalithaa in 2016 and the Madras HC declaring her niece and nephew as her legal heirs, the I-T dept had sent them notices to recover the arrears

jayalalithaa-house-controversy - 1 [File] Former Tamil Nadu CM J. Jayalalithaa's residence at 36, Poes Garden, also called Veda Nilayam; (inset) A statue of Jayalalithaa | J. Suresh, PTI

Until September 2016, 36, Poes Garden (aka Veda Nilayam) wielded an aura of power. It was the most sought-after address in Tamil Nadu, with every lane leading to the residence of the most powerful woman in the state. Now, 10 years after her death, the white bungalow which hosted many political meetings is still caught in a litany of woes. 

Former Chief Minister J. Jayalalithaa's Veda Nilayam will be brought to auction if her legal heirs—Deepa Jayakumar and Deepak Jayakumar—do not settle her income tax and wealth tax dues to the tune of Rs 13.69 crore (with interest).

The Income Tax department informed the Madras High Court on Thursday while submitting its responses to a writ petition filed by Deepa Jayakumar, challenging the demand for income and wealth tax dues. 

The I-T department informed the court that it had attached Jayalalithaa’s Veda Nilayam during her lifetime for non-payment of tax. The submission was made in the Madras High Court before Justice C. Saravanan by the department’s standing counsel, A.P. Srinivas.

He informed the court that Jayalalithaa had to pay arrears of income tax for different assessment years between 1990-93 and 2015-16. He also told the court that the I-T department was entitled to recover the dues with appropriate interest. 

Due to the death of Jayalalithaa in 2016 and the Madras High Court declaring her niece Deepa and nephew Deepak as her legal heirs, the department sent them notices to recover the arrears.

The intimation was sent to Deepa and Deepak on July 13, 2025 and August 4, 2025.

Incidentally, Deepa challenged the I-T department’s notice to recover arrears from her in the Madras High Court in August 2025. However, Deepak wrote to the department asking for an extension to pay his share of Rs 6.75 crore as tax arrears.

He wrote a letter to the department on August 11, 2025 and then a second letter on October 14, 2025. In the second letter, he sought permission to settle the arrears in instalments, which was accepted by the I-T department. He was permitted to pay his share of Rs 6.75 crore in six monthly instalments from October 2025 to March 2026. 

Deepak first paid an instalment of Rs 1.12 crore, and then a second instalment on November 15, 2025. Out of the total amount, he has paid Rs 62.50 lakhs under his own PAN number, instead of using the veteran politician's PAN number.

According to the standing counsel of the IT department, Deepak failed to make the correction, despite several intimations from the department.

The counsel reiterated to the court that these issues would force the I-T department to auction Jayalalithaa's Poes Garden residence if the income tax and wealth tax dues were not paid, as the property was attached by the I-T department.

The 24,000-square-foot Veda Nilayam, which saw many political upswings in the state until 2016, is now a closed bungalow with no life inside. Her legal heirs hardly visit the bungalow, for which maintenance has turned untenable.

The story of Jayalalithaa’s assets and its stakeholders have always triggered a huge interest among the people of Tamil Nadu.

THE WEEK had even published an exclusive report on Jayalalithaa’s assets and the battle for it back in 2017, which brought out interesting aspects of her assets and the stakeholders.