Also, Alappuzha District Collector T V Anupama submitted a preliminary report to Revenue Minister E Chandrasekharan on encroachment allegations against Chandy.
An urgent Council meeting quashed the tax concession for the Lake Palace resort situated at Kuttanad in Alappuzha district from 2004 onwards.
It decided to ask him to repay the concession amount he received till date. The council also suspended four municipal officials in connection with the disappearance of files related to his land documents from the municipal office.
He had said in the state assembly that he would quit public life if the charges were proved right.
Chandy, a businessman-turned-politician representing Kuttand in the state assembly, is the NCP nominee in the CPI(M)-led LDF ministry headed by chief minister Pinarayi Vijayan.
He became a minister in April following resignation of A K Saseendran, also from the NCP, after a purported audio clip of him speaking in sexual undertones to a woman emerged.
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