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Opposition Leader VD Satheesan has urged Chief Minister Pinarayi Vijayan to hold an all-party meeting to address the crisis, which impacts over 600 families.
The revenue officials initiated the step after the influential leader failed to surrender the plots by October 3.
The Department of Industries is trying to help entrepreneurs find more land even as more industrial parks are coming up across the State.
The new procedures of the Revenue Department are aimed at avoiding unnecessary application backlog over requests to convert the land category.
Certain CPM leaders in Kerala are allegedly reaping the benefits of the state government's move to levy fine and regularise encroached land and unauthorised buildings in Munnar.
Fake documents were used corner land taken over by the state government in Chinnakanal in Idukki district during a sensational anti-encroachment drive a few years ago.
LDF government in Kerala was allegedly trying to protect vested interests by not calling for a probe into the reclamation of 15 acres of paddy field at Kunnathunadu village in Ernakulam distric.