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Madusudanan had been removed from all posts besides the primary membership for going against the party principles and bringing disrepute to it, she said in a statement here.
She also announced the appointment of former minister K A Sengottaiyan as the new AIADMK Presidium Chairman.
Sengottaiyan was relieved as the party’s Organisation Secretary, a post to which he was appointed last week.
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Giving a major boost to the rival camp, Madusudanan yesterday extended his support to Panneerselvam, saying “he wanted to “safeguard” the party.
“To protect AIADMK, everybody should join hands with OPS (Panneerselvam),” he had said.
Sasikala had removed Panneerselvam from the Treasurer post immediately after his revolt, but he has maintained that being a temporary General Secretary, she does not have the powers to appoint or remove party functionaries.
Sasikala had appointed another senior leader Dindigul C Srinivasan as the Treasurer.
Insisting that he continued to be the Treasurer, Panneerselvam had on Feb 8 written to two banks here asking them not to allow anyone else to operate the party’s accounts.