Balachandran was facing death threats and was assigned a personal security officer (PSO) by the Tamil Nadu Home Department.
Balachandar was BJP's SC/ST Central Chennai chief.
On Tuesday, Balachandar was on the Saminayakan street speaking to a few men and his PSO had gone to have tea when three men surrounded him and brutally hacked him to death.
The Chennai Police has identified the three men who committed the crime and a case has been registered against them.
Questioning the law and order situation in the state, former Tamil Nadu Chief Minister and Leader of Opposition EK Palaniswami of the AIDMK said in the Assembly on Tuesday that 18 murders had taken place in Chennai in the last 20 days.