The decision was taken at a meeting attended by senior leaders including Chief Minister Oommen Chandy and other coalition party leaders.
The meeting decided that there was no need for Babu to resign as the High Court had stayed the vigilance court proceedings against him for two months.
After the Vigilance Court had ordered registering of FIR against Babu, he had resigned on January 23. However, the Chief Minister had not accepted his resignation so far.
Thankachan also said the Vigilance, in its last report, had submitted to the court that there was no evidence against Mani and so it was the UDF desire that he comes back to the cabinet.
The UDF meeting also wanted government to probe the alleged conspiracy behind the revelations made by Solar case accused Saritha S Nair before the Justice Sivarajan commission, probing the scam.