Gujarat-cadre IPS officer Asthana, who had an unprecedented feud with his boss Verma, was sent on forced leave by the government in October last year.
In his letter to President Ram Nath Kovind, former CIC Sridhar Acharyulu strongly advocated instilling transparency in the CBI and CIC appointments.
Verma who was transferred as the Director General Fire Services, Civil Defence and Home Guards, two days after Supreme Court reinstated him as the CBI chief, was replaced by M Nageshwar Rao as interim director till government finds next director for the agency, a government order said on Thursday.
The other members of the committee are Congress leader Mallikarjun Kharge and Justice A K Sikri, who was nominated by Chief Justice of India Ranjan Gogoi to represent him.
Swamy came to the probe agency's headquarters to meet Verma, who resumed his duties on Wednesday. He told reporters that the CVC (Central Vigilance Commission) report was based on the version of another officer who gave a "false report".
The PM-headed panel comprises the Chief Justice of India (CJI) or a Supreme Court judge, and Leader of Opposition in the Lok Sabha as members, the rules say.
The apex court sources said that Justice Sikri will be a part of the selection committee which includes Prime Minister Narendra Modi and senior Congress leader Mallikarjun Kharge.
The October order sent Verma and his deputy Special Director Rakesh Asthana, booked by the agency on corruption charges, into exile in a first-of-its-kind move by the government in the agency's history.
"No other govt in independent India has tried to kill institutions the way (the) Modi govt has, because it is scared of its massive corruption, cronyism and illegalities at the very top being caught out," tweeted CPI(M) general secretary Sitaram Yechury.
Jaitley, who speaking to reporters in the Parliament complex after the Supreme Court gave orders to reinstate CBI director Alok Verma, said the government would comply with the orders of the apex court.
"Welcome SCs decision to reinstate #AlokVerma as CBI Dir. (It) reinstates belief in independent institutions of our democracy that are its pillars," Mufti said in a tweet.
Verma's two-year tenure as the Director of CBI ends on January 31. He had moved the apex court challenging the Centre's decision
A bench headed by Chief Justice Ranjan Gogoi said Attorney General K K Venugopal told it that circumstances culminating in the situation started in July.
Challenging the government's decision, his counsel and senior advocate Fali S Nariman said Verma was appointed on February 1, 2017 and "the position of law is that there will be a fixed tenure of two years and this gentleman cannot be even transferred".
Justice Najmi Waziri asked Verma to go to Central Vigilance Commission's office on Thursday after his counsel said there are allegations of mala fide against him in Asthana's petition.
A bench headed by Chief Justice Ranjan Gogoi said the CVC report should also be given to Attorney General K K Venugopal and Solicitor General Tushar Mehta.
The court had appointed former apex court judge AK Patnaik to supervise the ongoing inquiry of CVC against Verma
Verma appeared before the panel headed by Chowdary and comprising Vigilance Commissioners Sharad Kumar and T M Bhasin among others, they said, without citing any other details.
- The enquiry to be supervised by retired Supreme Court Judge AK Patnaik. - All decisions taken CBI Joint Director M Nageswara Rao, who has been given the duty of CBI director from October 23 till today to be submitted in sealed cover to SC by November 12, the next date of hearing.
His reaction came after the Supreme Court asked the Central Vigilance Commission to complete within two weeks its inquiry into allegations against CBI Director Alok Kumar Verma and barred interim director M Nageswara Rao from taking any major policy decision.
The apex court directed that interim CBI chief M Nageswara Rao shall not take any major policy decisions. Decisions taken by him since October 23 till date shall not be implemented, it said.
"Trinamool to stand by Congress in Delhi today on the CBI issue", the party sources said. The Congress will stage protest outside the CBI headquarters here in protest against the Centre's decision to send the CBI Director on leave.
Swamy said he has full faith in the prime minister but claimed that those "around him" are trying to "harm the interests" of Modi as well as the BJP. Verma and CBI's Special Director Rakesh Asthana, who were at loggerheads, were divested of all powers and sent on leave by the government on Tuesday night.
Chidambaram's remarks came after the government Wednesday sent CBI Director Alok Verma and Special Director Rakesh Asthana on leave, as the two officers were involved in a bitter spat.
A bench headed by Chief Justice Ranjan Gogoi considered the submission of lawyer Prashant Bhushan, appearing for NGO 'Common Cause' that there were wider issues of corruption affecting the probe agency and the PIL needed to be heard urgently.