The 71 year-old writer died at a private hospital here.
The late author was famous for his novels like 'Mercury Pookal' and 'Irumbu Kuthiraigal' which earned him a good fan following.
He had worked with top two stars Rajinkanth (film "Baasha") and Kamal Haasan ("Nayagan" and "Guna").
Balakumaran was a recipient of a number of awards, including the state government's 'Kalaimamani' honour.
In his condolence message, Palaniswami hailed the writer's rich contribution to Tamil literature by way of "hundreds of short stories, over 200 novels" and many poems.
"The passing away of the affable Balakumaran is a big loss for the Tamil literary world," he said, extending his condolences to the family of the deceased.
Radhakrishnan and many others condoled the demise of Balakumaran.
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