Akhouri, 94, a freedom fighter, social activist and a former MLA, had breathed her last on June 3 in Mumbai.
As she had expressed her wish to be be laid to rest in her home state, Kerala, her body was brought here for the last rites, family sources said.
Priyanka had tweeted, "I will always remember you with that big smile on your face and the shine in your eyes. Rest in".
"Rest in peace Nani", she said in another tweet yesterday. Priyanka also shared a photograph of her grandmother in Instagram.
Born as Mary in Kavalappara family at Kumarakom here, Madhu Jyotsna Akhouri had gone to Bihar as nurse and later married Dr Akhouri.
Besides Priyanka's mother Madhu Chopra, she is survived by two other dauthers and a son.