In a major legal setback for actor Vijay, the Madras High Court has upheld the Rs 1.5 crore tax penalty imposed by the Income Tax Department, dismissing his appeal against the levy. The penalty stems from alleged non-disclosure of additional income earned from his 2015 film Puli. During tax searches in 2015, the department discovered that nearly Rs 5 crore of Vijay's Rs 15 crore remuneration was paid in cash and not reported in his tax returns, leading to the penalty.

Vijay, also the leader of the Tamilaga Vettri Kazhagam (TVK), challenged the penalty in the Madras High Court, citing delays in initiating proceedings. However, the court rejected his plea, stating that the delay was due to the appellate process and that the penalty was imposed correctly under the Income Tax Act.

This ruling comes at a politically sensitive time as Vijay is preparing for his political debut, advocating for clean governance and the fight against corruption. Although the TVK has not yet officially commented on the ruling, sources say they may appeal the decision further. The judgment has sparked criticism from political opponents, raising questions about Vijay’s integrity and the growing scrutiny surrounding his political ambitions, particularly in light of the ongoing tax-related issues.