In an official release in Chennai, he said he was aggrieved to hear of the death of five persons, hailing from Adhiyanoor village in Salem district.
The deceased were identified were Karuppannan, Jayaraj, Chinna Paiyan, C Murugesan and A Murugesan, the release said.
Extending condolences to the bereaved family members, Palaniswami said suitable arrangements would be made to transport the bodies to their home towns.
Palaniswami also announced that Rs three lakh would be given to each of the families of the deceased as 'special relief' from the Chief Minister's Relief Fund, considering their weak economic background.
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Police in Coimbatore said the five were part of 170 people who were taken by some agents for casual work in Karnataka but landed in Andhra Pradesh.
The bodies of the five persons in a decomposed state were found floating in the tank at Vontimitta village, about 120 km from Tirupati, indicating they might have died at least a couple days ago, they said.