The chief minister of the southern state of Tamil Nadu was found guilty of amassing wealth of more than $10m (£6.1m) which was unaccounted for.
She has to pay a multi-million dollar fine and resign as chief minister.
A former actress, her life has been marked by a series of high and lows.
The verdict was delivered by a special court in Bangalore amid tight security.
The prosecution argued that Jayalalitha and three others committed an offence against society.
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