Madurai Police have registered a case of unnatural death and destruction of evidence against four people, with Mr Palanisamy as the prime accused.
Mining baron, PR Palanisamy today was interrogated for nearly eight hours in connection with allegations of human sacrifice against him by the Madurai police.
A former employee of the mining baron, M Servarkodiyan, has claimed that the group targeted mentally challenged people for human sacrifice, and that he himself had brought some of the men from Pudukottai district.
A senior officer said 'We gave him a long questionnaire. His replies were video recorded and transcribed as well. This is just a primary statement."
The police have summoned Mr Servarkodiyan tomorrow for further investigations.
Last week police had exhumed skeletal remains of four bodies from a graveyard outside Madurai, after the mining baron's former driver alleged that he had got two men killed as human sacrifice and buried them sixteen years ago. Though a few local people have claimed that these remains are of their relatives buried there after they died naturally.
The police have sent the skeletal remains for forensic examination.
A senior police officer, Vijayendra Bidari told NDTV, "We would also get DNA tests done so we could establish the identity of these skeletal remains and investigate accordingly if they do not match".
Investigators are also collecting details of missing persons to check if it corroborates with details the whistle blower has given.
Police have registered a case of unnatural death and destruction of evidence against four people, with Mr Palanisamy as the prime accused.
Earlier in 2012, the mining baron was arrested in a tax evasion and illegal mining case. He's on bail now.
The allegations were originally made to senior bureaucrat U Sagayam, who had been appointed by the Madras High Court to probe allegations of tax evasion and illegal granite quarrying worth Rs 16000 crore.