The crime branch of the Delhi Police booked Dhinakaran for trying to bribe an Election Commission official to get the AIADMK's poll symbol of two leaves in a by-election to the R K Nagar Assembly seat in Tamil Nadu.
An FIR was filed against him following the arrest of an alleged middleman, Sukesh Chandrasekhar, from a five-star hotel in Delhi yesterday.
A senior police officer said the police was probing Chandrasekhar's links with Election Commission officials.
"I didn't bribe anybody," Dinakaran told reporters before leaving for Bengaluru to meet his aunt, jailed party chief Sasikala.
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The faction's deputy general secretary also denied that there was a revolt against him by some ministers, describing such reports as a "planned campaign of lies."
He reiterated that no minister had asked him to step down, as was being reported in a section of the media.
"I have already told you, there is no rift. The other day, ministers had only come to wish me for the Tamil New Year. This (issue) has been going on that after the bypoll I would be removed. There is no such move. This is a planned campaign of lies," he said.
Claiming he had no knowledge of the alleged middleman, Dinakaran said he had come to know of the development only through media reports. He said he had not received any summons or communication from the Delhi Police.
"It is basically wrong to say that Sukesh has spoken to me. I don't know any such person. I don't know what is the plan and who is doing it," Dinakaran said.
He said such information was being spread to "destroy our organisation politically."
He added his faction had sought more time on the symbol issue, and that there was no likelihood of a ruling by the Election Commission today. "There may not be a hearing today according to me."
The bypoll to the R K Nagar Assembly constituency was scheduled for April 12, but the EC cancelled it, saying the electoral process had been "seriously vitiated" by parties through use of money power.
Dinakaran was the candidate of the Sasikala faction.
The bypoll was necessitated following the death of then Chief Minister J Jayalalithaa on December 5.
On his meeting with Sasikala today, Dinakaran said he had not met her for some time and had therefore scheduled it for today.
On Friday, Dinakaran had termed as "rumours" reports of a revolt against him by some ministers and ruled out any immediate shakeup in the two-month old K Palaniswami cabinet.