BJP spokesperson Nirmala Sitharaman said her party's Kerala unit has already demanded Chandy's resignation and she reiterates the demand.
"Chandy should resign immediately as the needle of suspicion points towards him," she said.
Sarita Nair, the main accused in the scandal, is already under arrest.
Sitharaman said Chandy's close associates Thomas Kuruvilla and Tenny Jopan had made phone calls from the office of the Chief Minister to Nair and other persons involved in the scam.