"Chandy should immediately resign.Chief Minister was protecting him. If Chandy does not resign, the chief minister should oust him," Chennithala told reporters in Kannur.
A businessman-turned politician and NCP's MLA from Kuttanad, Chandy was inducted into the LDF cabinet in April this year in place of former Transport Minister A K Saseendran who resigned over allegations of sexual misconduct.
Meanwhile, activists of Yuva Morcha, BJP's youth wing, took out a march to the secretariat here demanding Chandy's resignation.
Police used water cannons to disperse the activists.
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The Kottayam Vigilance Court today directed the State Vigilance and Anti-Corruption Bureau to verify whether Chandy had violated rules to construct a road through paddy fields to a lake resort owned by him in Alappuzha district.
The court directed the bureau to file the report in a month.
Chandy has been facing allegations for allegedly filling paddy fields for the construction of a parking space and encroaching the Marthandam backwaters.
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