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The boat, H B Maria, was operated by PTR Holidays under the ownership of Thomas Mathew.
A floating restaurant on the west side of the pond that sprawls over five acres, pedal boats, a music fountain and a rain shutter have been completed as part of the project.
The Chungathu Muppathu lift bridge, located along the 2.5 km long boat channel that opens from Vembanad Lake to Kottayam has posed a challenge to passenger boat operations over the years.
Vanchiveedu restaurant, built in the shape of a houseboat, at Chennankari, Alappuzha is known for serving mouthwatering dishes cooked with freshwater fish.
The Chief Minister said that tourists should not be inconvenienced in any manner.
The vessel was intercepted by the Coast Guard off the coast of Chettuva and has been handed over to the Port Conservator.
One of the houseboats was newly built and the estimated loss is Rs 65 lakh.
According to tourism officials, the tourist boat jetties at Punnapra and Pallathuruthy are the most happening area with the houseboats and small-sized shikhara boats crisscrossing the lake and chugging along the sleepy canals without a break during the weekends and on holidays.
However, the houseboat operators need to cough up annual fees of up to Rs 24,000 based on the category of the houseboats.
Tourism Minister PA Mohammed Riyas said the temporary arrangement will be in place until a Seage Treatment Plant becomes operational.
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