Jayalalithaa’s Iconic Poes Garden Home Veda Nilayam Faces Auction Threat Over Rs 13.69 Crore Tax Dues, Madras

Once considered the most powerful address in Tamil Nadu, Poes Garden-popularly known as Veda Nilayam-symbolised authority, influence and political command.

The white bungalow was the centre of decision-making when former Chief Minister J. Jayalalithaa was at the helm of the state.

A decade after her death, the iconic residence now faces an uncertain future, weighed down by legal disputes and mounting tax dues.

Veda Nilayam and Its Political Legacy

Located in Chennai's upscale Poes Garden area, Veda Nilayam was more than just a residence. It was a place where major political strategies were shaped and crucial meetings were held.

During Jayalalithaa's lifetime, every road leading to the bungalow carried political significance. Today, the property stands silent, its gates mostly shut, reflecting a stark contrast to its once-busy past.

Despite its historic importance, the bungalow is now at the centre of a legal and financial battle involving unpaid income tax and wealth tax dues amounting to ₹13.69 crore, including interest.

Income Tax Department's Stand in High Court

The Income Tax Department informed the Madras High Court that Veda Nilayam would be auctioned if the outstanding dues are not cleared by Jayalalithaa's legal heirs.

This submission was made while responding to a writ petition filed by Deepa Jayakumar, Jayalalithaa's niece, who challenged the tax demand raised against her.

The department told the court that the property had been attached during Jayalalithaa's lifetime due to non-payment of tax.

Officials clarified that arrears related to income tax assessments from 1990-93 up to 2015-16 were still pending and recoverable with interest.

Legal Heirs and Recovery Notices

After Jayalalithaa's death in 2016, the Madras High Court declared her niece Deepa Jayakumar and nephew Deepak Jayakumar as her legal heirs.

Following this, the Income Tax Department issued notices to both heirs in July and August 2025, seeking recovery of the outstanding tax amounts.

While Deepa approached the court challenging the recovery notice, Deepak opted for a different route. He requested additional time to pay his share of the dues, which amounted to Rs 6.75 crore.

Deepak Jayakumar's Instalment Plan

Deepak wrote to the Income Tax Department in August 2025, followed by another letter in October 2025, seeking permission to clear the dues in instalments.

The department accepted his request and allowed him to pay the amount in six monthly instalments between October 2025 and March 2026.

He paid the first instalment of Rs 1.12 crore and made a second payment in November 2025. However, a complication arose when part of the payment- Rs 62.50 lakh- was made using his own PAN instead of Jayalalithaa's PAN.

Despite repeated reminders, the department said the correction was not made.

The Income Tax Department has maintained that failure to clear the dues will force it to auction Veda Nilayam, as the property remains under attachment. Officials reiterated before the court that the law allows them to proceed with recovery if payments are not completed as agreed.

The bungalow, spread across nearly 24,000 square feet, now remains largely unused. Maintenance has become difficult, and the heirs rarely visit the property. What was once a symbol of political dominance now stands empty, awaiting the outcome of legal proceedings.