There were persistent rumors in the Kollywood grapevine linking Lakshmi to director S. A. Chandrasekhar (father of Vijay). Both were powerful figures in the industry at the same time. While both parties denied a romantic relationship, their professional collaboration and public outings sparked gossip columns for years. Lakshmi eventually put the rumors to rest by focusing solely on her work and her daughter.
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Lakshmi was one of the most sought-after romantic leads in Tamil cinema (1970s–80s), often paired with superstars. Her storylines often blended melodrama, sacrifice, and love. There were persistent rumors in the Kollywood grapevine