"Government is ready for a debate anywhere on the issue as it has nothing to hide," he said at a press conference after a special cabinet meeting which discussed relief measures to be taken for rain affected people in the state.
He rejected the Opposition demand for his resignation and a judicial probe into the scam and criticised them for stalling the proceedings of the House on the issue.
The House was adjourned for the day ahead of schedule following protests and slogan shouting by Opposition members demanding Chandy's resignation .
LDF leaders led by Opposition leader V S Achuthanandan met the Governor and submitted a memorandum seeking his intervention on the matter.
The scam became a political issue after it was found that two staff in the Chief Minister's office had made frequent calls with scam accused Saritha Nair and Biju Radhakrishnan. They were removed from the office last week. Both of them have been arrested and remanded in judicial custody.