"Amma (Jayalalithaa) is healthy. She needs rest as per doctors' advice and will return in good health," senior AIADMK leader and former Minister P Valaramathi told reporters.
She said Jayalalithaa was performing official duties and pointed out that she had even announced the party's candidates for this month's civic polls while being hospitalised.
"Some jealous people are carrying out a wrong campaign to confuse people by spreading rumours" about Jayalalithaa's health, she said.
Jayalalithaa was admitted to the hospital on September 22 after she complained of fever and dehydration.
She has been advised to stay for a few days at the hospital.