The businessman-turned politician was under attack for the past one month from the opposition Congress-led UDF and the BJP over charges that the luxury resort at Kuttanad in Alapuzha district, owned by him, had allegedly encroached backwaters and violated land rules.
The high court had cancelled Chandy's petition, stating that a minister won't be able to approach the court against the government for personal needs.
"It's a classic case for disqualification". The NCP executive meet in Kochi on Tuesday discussed the matter and chose to inform the national leadership about its decision on it. It is based on the principle of collective responsibility that the entire cabinet resigns even if a no-confidence motion is passed against a single minister, it pointed out.
He was reacting to queries on the Kerala High Court's order on Tuesday, dismissing his petition challenging the collector's report on alleged encroachments by a company in which he has a stake.
The state unit of NCP has sought the opinion of its national leadership, state president T.P. Peethambaran told reporters. Former minister A.K. Saseendran, whom he replaced in the cabinet, is expected to return as decided earlier. "If there is an observation against me in the verdict, no doubt, I will quit", he said to a query on the growing demand for his resignation.
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The Division Bench of Justice P.N. Raveendran and Justice Devan Ramachandran rejected the plea filed by Chandy.
Mr Vijayan said the LDF had earlier chose to entrust him to take an appropriate decision on the matter after looking into all aspects.
Chandy is the Nationalist Congress Party nominee in the LDF ministry. "We can not disclose our decision to media", he told reporters.
Following the HC verdict, the chief minister finally ended his silence on the Chandy issue, telling mediapersons Tuesday that he would take the right decision on the issue at an appropriate time.
Chandy is the third minister to face allegations in the almost 16-month-old Vijayan's cabinet. While E.P. Jayarajan, minister for industries and sports, had to leave after facing charges of nepotism a year ago, A.K. Saseendran, minister for transport, quit following allegations of sexual misconduct in April.