Terming the government move as an attempt to turn the universities into Marxist centres, Opposition Congress-led United Democratic Front (UDF) members staged a walkout from the assembly.
Opposition leader VD Satheesan said the CPI(M)-led Left Government refused to entertain several proposed amendments to the Bill piloted by Industries Minister P Rajeev on behalf of Chief Minister Pinarayi Vijayan.
The Opposition proposed appointing a retired Supreme Court judge or a retired Chief Justice of the Kerala High Court to the Chancellor post.
It also proposed creating a selection committee comprising the Chief Minister, the Chief Justice of the Kerala High Court and the Opposition leader as its members.