In the year 2006, the then DMK Government had issued an order granting 30% Entertainment Tax exemption for all Tamil films with Tamil titles. The same order nullified with a new order issued by the current ADMK Government in 2011. The new order added many criteria for a film to avail the tax exemption, apart from having a Tamil title.

Producer Udhayanidhi Stalin of Red Giant Movies has alleged that the new order is being misused by the present government to deny tax benefit for his films in a bid to settle score with his father M.K.Stalin who had been the deputy Chief Minister in the previous government.

In a detailed press statement issued today, Udhayanidhi has explained how the tax exemption for the films produced by him after the new government had taken charge have been either denied or delayed. He has also registered a case with The Madras High Court pleading to scrap the new Government Order number 89 fixing various criteria for entertainment tax exemption alleging that it is a trick to deny the sop to those who are considered as enemies of the current rulers of the state and to give the benefit to undeserving films.

The Judges had ordered the Government to file its reply on Udhayanidhi’s petition but the Government has failed to do so even after many adjournments as mentioned in Udhayanidhi’s press statement. Hence during the hearing held on 10.04.2014, the judges have imposed a stay on the Government order 89, dated 21.07.2011