Election officials in Chennai have seized Rs 12.6 lakh unaccounted money from RK Nagar, where the by-poll will be held on 21 December.
On a tip off the officials searched a physiotherapy centre at Tamil Nadu's Korukkupet, falling within the constituency and seized the amount from there.
The officials have so far recovered nearly Rs 20-lakh unaccounted money from various locations in the constituency.
The election was earlier scheduled for April 12, but was cancelled following allegations that sums of money were distributed in a vote-for-cash scam.
The seat of RK Nagar is vacant following the death of former Tamil Nadu Chief Minister J Jayalalithaa in December 2016, who represented it for two terms.
A total of 59 candidates are in the fray.