He was returned to the assembly in the 1926 elections but refused a ministry in accordance with the policies of the Swarajya Party not to participate in the dyarchy.

He recommended the creation of a committee to investigate this rebellious deeds of the Madras members of the Swarajya Party.

[citation needed] This time, Muthiah accepted the invitation and served as the Minister of Education and Excise in the independent ministry from 1928 to 1930.

[3] This act, introduced provisions for reservations for Dalits and increased representation for Indian Christians and Muslims.

He launched a massive propaganda campaign against consumption of liquor and allocated a record budget of Rs.

Herbert Naderson, Secretary of the Prohibition League, praised Muthiah's efforts at the Imperial Institute at London.

He was commended in the legislative assembly by India's first woman legislator, Muthulakshmi Reddy, for his efforts at women's empowerment such as introduction of a provision for a woman director for the public health department, increasing maternity and child welfare staff and for the provision of a government grant to the Red Cross health school.