"The government has no hesitation in examining the issue. Let us examine the matter before taking a decision," he told reporters after a Cabinet meeting here.
Muraleedharan had yesterday asked government to state its stand on his demand as he thought it essential to prove the innocence of his father, who was removed as Chief Minister in the backdrop of the ISRO espionage case in the mid-1990s.
Chandy said the decision to drop action against the three police officials named by CBI while closing the spy case was taken by the previous LDF government.
"The present government's steps were only continuation of the process set in motion by the previous government,"he said.
On the charge that some in Congress had used the case to oust Karunakaran as Chief Minister, Chandy said a section of media and a certain political leaders had worked on making it sensational. "I have never crossed the limit in criticising Karunakaran during those days," Chandy said.
Murlaleedharan, a former KPCC chief and now an MLA, had written to Chandy last week seeking action against the three police officials as recommended by CBI while closing the case.
The case is back in the limelight after Kerala High Court ordering government to pay Rs 10 lakh compensation to space scientist Nambi Narayanan, one of the accused in the case.
A week later, Muraleedharan added a further dimension to the issue, alleging that former Prime Minister P V Narasimha Rao could have had a role in the "political conspiracy" linked to the case, which led to the outster of Karunakaran as Chief Minister in the mid-1990s.
