The development comes barely days after the resignation of Excise Minister K Babu hours after a vigilance court directed registering of an FIR against him in the bar bribery case.
The storm over the resignation, the second in the case after senior-most legislator and Finance Minister K M Mani was forced to quit in the same case, was yet to subside, when a fresh wave of embarrassment hit the Congress government, months before the assembly polls.
She alleged that Rs 1.90 crore had been given to Chandy's key aide to set up mega solar projects in Kerala and about Rs 40 lakh had been given to the Personal Assistant of Aryadan.
Both Chandy and Aryadan have denied the charges.
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Chandy said it was "an attempt by Saritha to wriggle out" of the case after the scam broke out.
"Let her state what benefit she got after allegedly bribing us?", Chandy toldreporters in Thiruvananthapuram after a cabinet meeting.
"I have not helped her in any way. The Commission will come out with all the truth. Saritha was given a lot of opportunities to tell her version," Chandy, who had deposed before the commission for a marathon 14 hours in the state capital on January 25, said.
Saritha alleged that Chandy's former PA Jikkumon, who had sought Rs seven crore bribe in connection with setting up mega solar projects in various parts of the state,had insisted that the money meant for Chandy be handed over to one Thomas Kuruvilla in Delhi, reportedly Chandy's unofficial aide.
Saritha said she had met the CM on Dec 27, 2012 at Vigyan Bhawan when he was about to leave for the airport after attending a meeting of National Development Council.
CPI(M) state Secretary Kodiyeri Balakrishnan said the
Governor should intervene.
"The Chief Minister and his government should step down. This is the first time in the state's history that such corruption allegations have been raised against a CM," he said.
Chandy had asserted before the Commission that there was no need for him to undergo a lie-detector test as he has done "nothing wrong' and that the charges against him and his office were "politically motivated".
"What is the need for that?(lie detector test).I have not done anything wrong.None has doubts that I have done anything wrong," he had said to a query during cross-examination.
The BJP also demanded the resignation of the UDF government and took out protest marches.
(REOPENS MDS 8)
She said when she introduced Sreedharan Nair to the chief minister, saying he is the first investor for a mega solar power project, Chandy shook hands with him and spoke with him about the project.
Chandy had assured him that land would be made available for him in affordable price to set up the project, she told the Commission.
Though the appointment was granted at 4 PM on July 9, 2012, Chandy reached at his office around 8 PM, she said.
This was in response to Chandy's assertion before the judicial commission probing the scam that there was no need for him to undergo polygraph test as he has done "nothing wrong".
Meanwhile, television channels aired a purported conversation between Saritha and Congress leader Thampanoor Ravi in which he allegedly tells her to give a statement in favour of Chandy when she deposes before the commission.