Party sources said Chennithala is reluctant to join the government headed by Chandy whose office is under cloud over the scandal. He is expected to convey his position to Congress President Sonia Gandhi tomorrow.
They said Chandy wants Chennithala's entry into his Cabinet as he and the group supporting him believe that it would give a breather to Congress-led UDF which is under fire from opposition CPI(M)-led LDF over the scam.
Chandy was not willing to give Chennithala the portfolio being held by his confidant Thiruvanchoor Radhakrishnan when the issue of the PCC chief's entry into the Cabinet was debated in the party before the scam came to light.
It was one of the demands put forward by Chennithala and the "I group" supporting him for his entry into the government.
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Meanwhile, Congress' alliance partners including Muslim League and Kerala Congress (M) also want Chennithala's induction into the ministry. They believe such a move would help the government.
He, however, will abide by whatever direction Gandhi gives, sources close to Chennithala said.
State Congress leaders supporting Chennithala are also not in favour of his entry into the Cabinet at this juncture.