The seven-member panel was formed in April hold merger talks between the two AIADMK factions.
The former CM accused the ruling AIADMK faction of enacting a drama and thus was disbanding the merger negotiating team.
"After the setting up of the negotiation team, they started playing a drama. We were not ready to play any dramas," he said.
The OPS camp, which presently has 12 MPs and 11 legislators, also said that the EPS faction has not honoured their demands of expelling party chief V K Sasikala and her nephew T T V Dinakaran.
"The decision was based on the feedback from our cadre, common people, especially from ladies," said Panneerselvam.
Rajya Sabha lawmaker V Maitreyan, who was a member of the now dissolved committee, said the EPS camp was also unwilling to seek CBI probe into Jayalalithaa's death.
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