An all-party meeting to discuss the issue on November 12 had been postponed in view of the case in this regard coming up in the court, he told reporters at a press meet here.
"A clear government order has been issued which states that the Kovalam Palace and related land is the property of the government," he said.
The Halcyon Castle, built by the Travancore Royal Family in 1930s, has been the subject of a dispute between the government and R P Group over ownership since 2004 after the adjacent Tourist Resort Asoka run by ITDC was sold as part of disinvestment.
R P Group has now approached the government with a suggestion that they fully agree to the stand that the Castle and adjacent 4.113 heactares of land belonged to the state and government should lease out some of the surrounding land to the group for tourism development.
This move has been opposed by CPI-M and CPI which alleged it was an attempt to surrender the ownership of the Castle and nearby land to the private company.
In 2004, the UDF government took possession of the palace and the owner questioned this move in the court. The verdict came in favour of the owner, Chandy said.
The next year the government brought an ordinance and took possession again. But in January 2011, the court ruled against the government move and an appeal was pending.
"The government is totally right in its stand that the palace and land belonged to the government," Chandy said.
He said the government wanted to settle the issue with the hotel group, which has bought the adjacent Hotel Leela, as the government could not undertake any repair works in the Castle due to the pendency of the case.
They had also said that they would withdraw the petition filed in the case in the high court.