Issuing a press release after the joint meeting of its District Council and Commodity Council on Tuesday, FNCCI said it was saddened by the way the state treated Pandey in connection to a Panchayati era case following the Supreme Court verdict of March 17.
Most of the participants of the meeting urged senior executives of FNCCI to seek pardon for Pandey's release.
"We are not saying that the apex court made the mistake," Dinesh Shrestha, vice president (commodity) of FNCCI, said. "We request the government to find a way out by pardoning Pandey."
FNCCI also argued that Pandey's arrest has industrial development of the country and deteriorated investment climate.
"We are trying to meet Prime Minister Sushil Koirala and make a formal appeal to the government for Pandey's release," Shrestha said.
FNCCI executive committee members are likely to meet Prime Minister Koirala on Wednesday.
Pandey was arrested in connection to a three-decade old corruption case when he was working as an accountant with Nepal Drinking Water and Supply Corporation. Right after his arrest last week, he was admitted to Shahid Gangalal National Heart Center after he complained of chest pain. He is receiving treatment at the hospital.
Shrestha said the process to elect new president, however, will move ahead. FNCCI has called its executive committee meeting on April 10 to decide the future course of action. It is holding annual general meeting on April 11.