According to officials, an investment of ₹7.36 crore in Red Giant Movies that Udhayanidhi had declared in 2021 does not appear in his 2026 election affidavit. Meanwhile, a fresh investment of ₹2.63 crore in the same company has been listed in 2026 under his spouse's name, though this had not been disclosed earlier.

The Department also pointed to differences in reported loan figures. Udhayanidhi's 2026 filing lists loans of ₹10 crore, compared with about ₹11.06 crore in 2021. However, company financial statements suggest borrowings closer to ₹17.69 crore. Officials said the exact position remains unclear due to incomplete records.

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They further noted that the tax returns were filed using a format that does not require a full balance sheet, making independent verification of investments difficult. Some audited financial statements are unavailable, and Udhayanidhi's spouse has not filed income tax returns for the relevant year, adding to the uncertainty.

The issue came to light following a petition by a Chennai-based voter, who alleged significant discrepancies between Udhayanidhi's past and current disclosures, as well as inconsistencies with corporate filings. The petition claims there are unexplained changes in assets, loans and financial transactions.

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In his latest affidavit, Udhayanidhi has declared total assets of about ₹20.6 crore, including ₹12.9 crore in movable assets and ₹7.7 crore in immovable property. His reported income for 2024-25 is ₹10.4 lakh, while his spouse has declared earnings of over ₹2.9 crore.

The High Court has sought responses from the tax authorities, and the matter is expected to be reviewed again in the coming weeks.