Mr Dinakaran was arrested last night following four days of questioning for allegedly attempting to bribe an unidentified Election Commission official to get the undivided AIADMK's 'two leaves' election symbol for his faction. His close associate Mallikarjuna was also arrested.
Police had earlier said that Sukesh had struck a deal for Rs 50 crore for helping the AIADMK faction to keep the 'two leaves' symbol. Police recovered Rs 1.30 crore in cash from Sukesh when he was arrested from a five-star hotel in Delhi.
Mr Dinakaran has been arrested for arranging the amount from undisclosed sources and getting it transferred from Chennai to Delhi through illegal channels, said Deputy Commissioner of Police (Crime) Madhur Verma.
Mallikarjuna has been arrested for assisting Mr Dinakaran for transfer of this money from Chennai to Delhi, he added.
Police were verifying whether Sukesh had approached any Election Commission official for getting a favourable verdict for TTV Dinakaran's faction.
The leader had come under the scanner following Sukesh's arrest from a five-star hotel in New Delhi on April 16. TTV Dinakaran, who was appointed deputy general secretary by AIADMK chief VK Sasikala, has been isolated in his party amid moves to merge rival factions led by Tamil Nadu Chief Minister E Palaniswami and his predecessor O Panneerselvam.
A powerful section of the ruling AIADMK (Amma) recently revolted against the Sasikala-Dinakaran leadership. The development came after Mr Panneerselvam, who is leading the rival faction, demanded the ouster of Sasikala and Dinakaran as a condition for merger talks.