DMK general secretary K Anbazhagan, who accused Alagiri of creating confusion by holding consultative meetings with his supporters, asserted that disciplinary action would be taken against those who maintain links with him.
On his part, Alagiri appeared to soften his stance, saying he has never worked against the party.
"I have never worked against the party at any point of time and wonder why action was taken against me. I was only trying to set right the 'disorder' and 'confusion' prevailing in the party," he said in Madurai.
The Madurai MP, who was denied a ticket, had also embarassed the party by meeting Prime Minister Manmohan Singh recently against the backdrop of DMK spurning electoral pact offers from Congress.
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The disciplinary action warning is also aimed at isolating Alagiri after his threat to play a key role in the LS polls and his statements about the 'bleak prospects' of DMK at the hustings.
DMK had suspended Alagiri in January, charging him with indulging in acts of indiscipline after he levelled some charges against his brother M K Stalin.
The warning assumes significance as DMK chief Karunanidhi is scheduled to launch his election campaign from Madurai on April 5.