Addressing a meet the press programme organised by the Press Club here, he said Chandy has no right to continue in office in the wake of more 'evidence' against him coming out before the Judicial Commission that is probing the scam.
Chandy's resignation was also necessary for the independent functioning of the Solar Commission, he added.
The solar scam pertains to duping of a large number of people by scam accused Saritha Nair and Biju Radhakrishnan.
On the bar bribery issue related to Finance Minister K M Mani, Balakrishnan said the CPI(M) and the party led LDF opposition firmly believes he should not present the budget since an FIR has been registered against him in the case.
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"Chandy should keep Mani out of the Ministry. Allowing him to present the Budget in the assembly session starting on March 6 is a challenge to people of the state," he said.
Asked about the Opposition strategy to prevent Mani from presenting the budget, he said Opposition MLAs would meet on budget day and take an appropriate decision on the matter.