Talking to reporters here, he alleged that accused Salim Raj had misused the office of Chief Minister for his acts.
"The institution that has to protect the life and property of people turned out to be a venue for grabbing the assets of people," Achuthanandan said.
"Chandy should resign taking responsibility for this," he added.
Yesterday, CBI, arrested Salim Raj and nine others in connection with two land grabbing cases involving properties totally worth more than Rs 425 crore.
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