The move came a day after the apex private sector body expressed “displeasure” over Pandey’s arrest. He was arrested on March 17 for not fulfilling his jail term over a corruption case three decades ago. In June 1982, the Patan Court had convicted Pandey, who was working as an accountant at state-owned Water Supply Cooperation at the time, of corruption charges. Pandey, however, claims he was released on royal pardon.

FNCCI Vice-president Dinesh Shrestha said the formation of the committee is not to defend the state’s decision, but to make a request for sorting out the issue. He said the committee aims to hold meetings with President Ram Baran Yadav and Prime Minister Sushil Koirala.

A member of the rival faction at the FNCCI, however, said the decision to form the committee was taken under pressure from Pandey’s supporters. “Such an act will definitely smear the image of the private sector,” he said.

The meeting also decided to discuss future roadmap of the private sector body at the executive committee meeting slated for April 10 and hold an annual general meeting (AGM) on April 11-12.

Pandey’s rival faction claims the executive committee meeting will have to automatically stamp a decision in line with the FNCCI statute that bars anybody charged with criminal offence from leading the FNCCI. But the faction supporting Pandey claims a two-third majority will have to take the decision.

Pashupati Murarka, officiating president of the FNCCI, told the Post the executive committee meeting would discuss the future course of action regarding the position of the president. “The executive committee meeting will be crucial. It will make the future course of the FNCCI clearer,” Murarka said.

The three-decade-old corruption case surfaced during the FNCCI executive committee election last year, and the rival faction had questioned the Pandey’s legitimacy as president. But they made a truce later.