Recalling the circumstances under which he was asked to resign on February 5, she said, Panneerselvam "pushed us to do that and we did not do it on our own. This is what had happened."
Speaking to party workers at the Poes Garden residence of late Jayalalithaa, she said, "I would have allowed him, as I did not aspire to becomes CM and that is the truth."
However, two days later, revolting against the party leadership, Panneerselvam said he was forced to resign on the ground that he should follow party discipline.
Sasikala today said, "They (DMK) had thought that if possible, let Panneerselvam split up and bring with him some legislators and with 89 MLAs (of DMK), a government could be formed."
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She said the Chief Minister did not comment when DMK Deputy Leader in Assembly Duraimurugan last week said his party would support him.
Duraimurugan, in his usual style and lighter mood had told Panneerselvam "you be the Chief Minsiter for five years, our support will be there for you."
"He should have told Duraimurugan that he does not need their support when the AIADMK has a majority," Sasikala said.
"If Panneerselvam had said just that, I would have allowed him to continue and I would not have disturbed him."
"We decided to take a decision soon and it was Panneerselvam who pushed us to do that and we did not do it on our own and this is what had happened," she said.
Panneerselvam, who was just an ordinary man from small town Periyakulam, was groomed by Amma but "is trying to divide, and rule, this party without any gratitude," she charged, adding he "demonstrated that he has not been loyal to the party".
"We have seen a thousand Panneerselvams before getting on to this stage and struggles are like dust on my hand and I am not worried," she said.
"What is happening now (the factional fued) may have
occured on the day when Amma passed away and I had fully realised it," Sasikala said.
She alleged that several persons were involved in the "conspiracy" to split the party even at the time of Jayalalithaa's death.
Sensing the trouble, she asked asked five senior ministers, including Panneerselvam, to take charge immediately, the AIADMK General Secretary said.
"I could have become Chief Minister if I had wanted when Amma passed away. That thought did not cross my mind for even a second," she said, adding she wanted "Amma's government to continue."
Sasikala claimed she was told by the incumbent Chief Minister and other ministers that only she should "take charge," and she replied that "we can look at it later," and asked the new Cabinet to take over.
On the challenge posed by Panneerselvam, Sasikala said she had already seen such things in the past 33 years of her association with Jayalalithaa.
Describing such rivalry as "usual," she said we "should continue to be peaceful."
Sasikala claimed that when Jayalalithaa was disheartened and showed disinclination towards politics after the turn of events following the demise of party founder M G Ramachandran, she "motivated" and "requested" her to continue in her political journey.