Manoj alias Manoj Sami was detanied in Alapuzha in Kerala based on the interrogation of those arrested earlier in connection with the case, police said.
He was brought and produced before Kotagiri Magistrate C Sridhar who remanded him to three days police custody.
Manoj was allegedly hired by Kanagaraj and Sayan, the key conspirators in the crime.
With this, the number of persons arrested in the April 24 incident has risen to eight.
Kanagaraj was killed in a road accident in Salem on April 29 while another key accused Sayan was injured in a mishap in Kerala on the same day.
Sayan was yesterday questioned by Nilgiris district Superintendent of Police, Murali Rambha, at a private hospital in Coimbatore, where he has been undergoing treatment since April 29.
The gang members had planned the dacoity based on Kanakaraj's information that there was a huge amount of cash in the bungalow, police had said.
The Kodanadu estate figures in a disproportionate assets case involving jailed AIADMK general secretary V K Sasikala and late Chief Minister J Jayalalithaa, among others.
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