A smiling Chandy said he was leading a "model" family life. "We will see what all steps have to be taken legally to fight it out," he told reporters at his official residence 'Cliff House' here.
Saritha had alleged in a 25-page purported letter, which she had claimed to have written in 2013 while in police custody after her arrest in the solar panel scam, that she had been sexually abused by Chandy at his official residence.
"The allegation was extremely serious," he said.
He also sought a thorough inquiry into the allegations of Saritha and said Chandy and others named by her, including ministers Adoor Prakash, A P Anil Kumar, former union minister K C Venugopal, Jose K Mani, MP and MLAs Hibi Eden and P C Vishnunath should be brought to book.
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Asked about fielding of certain 'tainted' ministers, Chandy said in the last five years he had faced the maximum allegations.
With regard to certain controversial land allotment decisions taken by the government, which later modified them, he said they were all unanimous Cabinet decisions and "I will never hold any particular person responsible".
Chandy said he did not want to go into the details of discussions with party high command on the preparation of candidates list for the polls. "We all are confident that the high command would select the best candidates for the polls".
Meanwhile, BJP in Kerala today asked Chandy to keep away from the May 16 state assembly polls in the wake of Saritha's allegations.
Slamming Chandy over the issue, BJP State President Kummanom Rajasekheran said "Chandy should not contest the coming polls if he has any morality left in public life..."
"The allegation has tainted the image of Kerala," he said, adding, the charges against Chandy were hitherto unheard of in the state.
He also wanted a case to be registered against Chandy.
The chief minister was virtually challenging the law by remarking that "people will decide everything," he added.