A probe team had found that Tenny Jopan was constantly in touch on phone with Saritha S. Nair, who along with her former live-in partner Biju Radhakrishnan was arrested earlier in the cheating scam.
The con-couple had formed a company Team Solar, which was engaged in erecting solar panels at offices and homes.
They collected crores of rupees from influential people on the false promise of providing the equipment to tap green sources of energy. More than 15 cases of cheating have been registered against the duo in the state.
Jopan's arrest came after a businessman complained to police that Nair had taken Rs 40 lakh from him promising a business in solar panels at a state-owned industrial park in Palakkad.
The businessman said that Jopan knew about the money transfer. The businessman remains untraceable for the past few days.
Two other staffers in the Chief Minister's Office, Jikumon Jacob and Salim Raj, have been suspended for their links with Nair.
The call details of Home Minister Thiruvanchoor Radhakrishnan show that Nair had called him too.
"I am a public person. So many people call me and I answer the phone myself. The police have been asked to investigate the matter," Radhakrishnan said.
Chandy has also come under attack as protestors supported by the opposition have started waving black flags at places where he goes to attend public functions.
"I have no allergy towards the colour black and I cannot be scared by all these acts," Chandy said.