Khatiwada is critically injured and has been airlifted on a Nepal Army helicopter to Biratnagar for treatment.
He was attacked while walking on street with Tika Ojha.
Meanwhile, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shown serious concern over attack on Khatiwada by an unidentified group.
Issuing a press statement on Sunday, the apex business organization in the country has condemned the incident and demanded the authorities concerned to take action against those involved in the incident.
The group attacked Khatiwada while the latter was returning from a meeting held at Taplejun District Police Office to discuss on extortion issues.
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