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The union territory, which is an archipelago of 36 islands, has even requested the central government to allow schools to reopen.
CBI registered the case over smuggling of endangered species after a request from the Wildlife Crime Control Bureau.
Lakshadweep MP, Mohammed Faizal, says domestic tourists would be allowed to enter the islands after proper screening at reporting centres.
Corals found in the Kutch are more temperature-tolerant, and can, therefore, improve resilience in the reefs in Lakshadweep and help sustain marine ecosystems.
During his alleged lavish holiday in December 1987, former PM Rajiv Gandhi is also said to have jumped into a lagoon and saved an injured beached whale.
Private sector participation was also invited for tourism-based projects in two archipelagos in the region.