Diwakaran's anticipatory bail plea was rejected by the Madras High Court.
Sasikala has been a close aide of Jayalalithaa for more than 3 decades. She was a co-accused in the disproportionate assets case that involved Jayalalithaa.
This is the first time any member of Sasikala's family has been arrested following her eviction from the party.
Sasikala, along with 20 members of her family was suspended from AIADMK. Reports reveal that Jayalalithaa took the step fearing Sasikala's growing influence in the party.