Dr Govind Prasad Kusum, member-secretary of the Bibhushan Samiti that recommended the Republic Day awards, said the committee on Tuesday decided to ask the cabinet to review the awards to Rai and Rana.
"The decision has been taken out of respect for public sentiment," Dr Kusum told myrepublica.com.
The government is under intense pressure from civil society and families of the martyrs of Janaandolan II to strip the police officers of the wards conferred on them by the president upon the recommendation of the cabinet last Saturday on the occasion of Republic Day.
Rai has been accused of using excessive force during Janaandolan II while Rana has been facing charges of human rights violations during the conflict period.
The committee took note of the controversy surrounding the awards this year and formed a body to chalk out guidance and standards for recommending names for the Republic Day awards.
The committee comprises Deep Kumar Swar, Ram Swarup Sinha and and Govinda Bahadur Thapa.
Meanwhile, a group of lawyers have filed a writ petition at the Supreme Court demanding scrapping of all Republic Day medal awards.
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