The cabinet decided to send a warning to the state government to rectify all violations of law

Law Minister Arun Jaitley

Law Minister Arun Jaitley said the warning was an initial response. "The state would be requested to identify the officials who are guilty of committing excesses and to proceed against them as per law," he said.

The government was responding to the dramatic arrest on Saturday of the state's former Chief Minister, Muthuvel Karunanidhi, and the subsequent arrest of thousands of his supporters and journalists.

The current Chief Minister of Tamil Nadu, Jayalalitha Jayaram, ordered his arrest on corruption charges, sparking a storm of protest in the state and expressions of concern in Delhi.

The former chief minister's party, the DMK, is a key ally in the central coalition government.

Chief Minister Jayalalitha: Was herself convicted of corruption

His supporters had called for tough punitive action, perhaps even the imposition of presidential rule.

But the BBC's Jill McGivering in Delhi says this warning is a far less aggressive move.

Mr Jaitley did not say how long the state government was being given to comply with these demands and did not say what action the central government would take if they were not met.

Charges dropped

In another development, the authorities in Tamil Nadu have dropped charges against two other ministers, who were arrested when Mr Karunanidhi was detained.

The state would be requested to identify the officials who are guilty of committing excesses and to proceed against them as per law

Law Minister Arun Jaitley

TR Balu and Murasoli Maran, both of whom are in the federal government, were arrested for allegedly obstructing the police during their dramatic, night-time raid on Mr Karunandhi's residence.

The two ministers had actually been freed on Monday - but had refused to leave their cells until charges against them were dropped.

State-run Doodarshan TV quoted official sources in the Tamil Nadu capital, Madras, as saying that the charges had been dropped in order to maintain a "cordial relationship" between Delhi and the state government.

A new governor for Tamil Nadu, C Rangaranjan, has also been sworn in following Delhi's decision to dismiss the previous governor, Fatima Beevi, because she backed the police action against Mr Karunanidhi.

Protest strike

Tamil Nadu was left largely paralysed by a strike on Monday in protest over the arrests.

The arrest is being seen by many as an act of revenge by Ms Jayalalitha, who was herself convicted of corruption charges when she was in opposition.

Her party won bitterly contested state elections two months ago, and she became chief minister despite her corruption convictions.