Sreedharan Nair told Malayalam TV channels after his statement earlier in the day before a magistrate that he had met the Chief Minister and on July 9, 2012 and discussed the project with him.
His statement assumes significance in the wake of Chandy's assertions in the Assembly that he had met Nair only as a representative of a quarry owners association and had not discussed anything about the solar project.
KPCC President Ramesh Chennithala told reporters after the meeting that it was a "political conspiracy" and that the Congress led UDF would face it unitedly.
Sources said an emergency cabinet meeting would be held tomorrow morning.
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Several people were allegedly cheated worth crores of Rupees by Saritha Nair and her accomplice Biju Radhakrishnan for solar panel solutions.
It took a serious political turn with the arrest of one of Chandy's close personal aides, who has alleged links with the accused. Two other employees in his personal staff have also been removed in connection with the scam.
Activists of Youth Congress and CPI's youth wing AIYF also clashed here after taking out marches in support of their respective political stands.
Opposition alleged in the Assembly that the investigation was being sabotaged by the government with an intention of forestalling an inquiry into Chandy's role in the scam.
However, Chandy accused LDF of trying to create a smokescreen with political motives and maintained that an "effective and impartial" probe was on.