Concerned over the fallout of social activist
Anna Hazare's arrest on investment climate, industry body
Ficci on Tuesday said the government's action must find a balance between the right of Parliament to make law and individual freedom of speech.
In a democracy, the right of the country's Parliament in determining the nature of legislation and change in established law is supreme and sovereign.
"At the same time individual freedom of speech and assembly is an article of faith of our democracy and also guaranteed by the Constitution as Directive Principles," Ficci President Harsh Mariwala said in a statement.
He said the government's action on Hazare "must find the necessary balance that strengthens our democratic institutions and conventions".
Mariwala, who is also head of FMCG major Marico, said that India's vibrant democracy and strong institutional framework are prerequisites for investment and "thus need to be preserved and reinforced".
The Delhi Police on Tuesday arrested Hazare and some of his close associates and prevented them from going ahead with their indefinite fast demanding a "strong" Lokpal in defiance of the prohibitory orders.