"The LDF move to topple a democratically elected government through agitation will not be tolerated at any cost," Chandy told reporters after a cabinet meeting.
The government will be forced to take stern action in case the siege affects its functioning, he said.
Reiterating and justifying his decision not to quit, Chandy wanted the Opposition to come out with clear cut reasons in support of their demand.
The probe into the cases registered now was in the final stage and it was expected that a charge sheet could be filed within one week, he said.
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On agitation since the scam broke out last month, LDF has decided to hold a secretariat siege with more than one lakh volunteers from August 12 as part of a move to intensify the stir demanding Chandy's resignation and a judicial probe.
Referring to KPCC President Ramesh Chennithala's decision not to join the ministry, Chandy said it was part of the High Command's resolve to "maintain status quo" in the state.
The High Command decided not to effect any change in the party set up and in the ministry till the next Lok Sabha polls, he said, adding, party resolve was applicable to "me, KPCC President and also to all Congress workers."
Congress leadership's decision last week in this regard had put a lid on the debate of a possible cabinet reshuffle by inducting the KPCC Chief in the cabinet.