Palaniswamy and the leaders of the unified AIADMK have been locked in a turf war with the sidelined Dhinakaran and are opposing the involvement of Sasikala's family members in the party and government affairs.
"The government of Amma (Jayalalithaa) is a fort that protects the poor and there is no room for family rule," he said.
His comments come amid the rebellion by 21 MLAs, loyal to Dhinakaran, who had met state Governor Ch Vidyasagar Rao on August 22 and expressed lack of confidence in the chief minister, a day after factions led by Palaniswami and O Panneerselvam merged.
Addressing a government function in commemoration of the centenary of late chief minister and AIADMK founder M G Ramachandran at Vandalur on the city outskirts, Palaniswami also said "there is no place for graft" and "anarchy" in the regime.
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Sasikala is serving a prison sentence after being convicted in a disproportionate assets case.
The Palaniswami-Panneerselvam regime is firm on the ouster of Sasikala and her family from AIADMK and have convened a meeting of the party's general council on September 12 where the issue is expected to be taken up.
The function was attended by deputy chief minister O Panneerselvam and officials, among others.
The state government is holding district-wise functions to celebrate the centenary of MGR, a matinee idol turned politician, who ruled the state from 1977 to 1987.
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