"Vigilance has not come out with any evidence against Babu. They have not moved an inch forward in probing the charges levelled against him," he told reporters here.
"We welcome the crusade against corruption and any probe, but the hidden motive behind it cannot be accepted," he added.
Targeting VACB Director Jacob Thomas, Chandy alleged that the raids at the houses of Babu and his relatives were carried out "without any preliminary findings".
Asked whether he was the next target of the VACB, the former chief minister said he was not afraid of any probe.
"We have not done anything wrong. The charge was levelled by a person who had suffered loss due to the government's decision on the liquor policy," he said.
Recently, the VACB had raided the residences of former Kerala excise minister Babu and his two daughters in connection with a disproportionate assets case against him.
Babu, who had a controversial stint as excise minister in the previous UDF government, had resigned after a Thrissur vigilance court ordered the Vigilance Department to register an FIR against him in connection with the bar bribery scam.
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