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His sister B Suryakantham has filed nomination papers for the by-election to the Amalapuram constituency as an independent.
This was after the TDP decided to field Balayogi's wife Vijayakumari after declining Suryakantham's request for the party ticket.
TDP sources in Hyderabad said they had asked the party's East Godavari district unit to send details about the development.
"We are confident of sorting out the matter. Everything will be settled once the official nominee (Vijayakumari) files her nomination on Thursday," sources said.
Though Balayogi's widow was initially reluctant to join politics, TDP supremo and Andhra Pradesh Chief Minister N Chandrababu Naidu persuaded her to contest the by-election.
Meanwhile, the state Congress unit has left it to party president Sonia Gandhi to decide whether the party should field a candidate.
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