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Deputy Mayor M L Rosy raised serious allegations against Mayor M K Varghese at the council meeting on Saturday.
Former minister V S Sunil Kumar said CPI can no longer accept M K Varghese as a Left-backed Mayor.
CPI has accused M K Varghese of promoting BJP's politics by repeatedly endorsing Suresh Gopi, but CPM remains tight-lipped.
Speaking at a meeting for branch secretaries of the CPM, Govindan also advised comrades not to keep away from religious events.
Criticisms against the CPM and the Chief Minister are expected to feature prominently in the final report.
CPI state secretary Binoy Viswam has issued a strong statement in wake of the allegations against CPM strongman P Jayarajan's family.
Visowm said the Left should question whether the foundations are shaken.
Dipankar Bhattacharya said the revival of Congress raised issues like reservation and caste census, as well as kept making references to crony capitalism.
The meeting also heard questions over the CPI not being a part of the Congress, despite it being an alliance partner at the national level.
In the recent Lok Sabha election, CPI leader Annie Raja contested in Wayanad for the LDF.