"It is a blatant lie. In the present situation, Tamil Nadu is the most peaceful state in India and law and order situation is also very good," Palanisamy told reporters at the City Airport tonight.
Stating that both the BJP-led central and AIADMK-led state governments were functioning to serve the people and working jointly for their benefit, he said the ideology of both the parties was completely different.
Paneerselvam had taken pains for the cause of the party and now both (he and Paneerselvam) were taking it on the path of growth, he said and blamed the media for blowing the issue out of proportion.
The proposed entry of film stars Rajinikanth and Kamal Hasan will not have any impact on the AIADMK and nobody can defeat the party, he said.
Blaming the DMK for the prolonged dispute on Cauvery water issue, Palanisamy said the party had not renewed the 1974 agreement which was the root cause for the problem.
It was the case filed by former chief minister Jayalalithaa which resulted in Tamil Nadu getting its due share of water, he said.
The DMK had done nothing for the benefit of the state, when it was ruling at the Centre with the Congress, he alleged.
The chief minister also expressed hope that the Centre would constitute the Cauvery Management Board within six weeks as directed by the Supreme Court in its verdict which would be in force for 15 years.
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