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Phogat decided to return her Khel Ratna and Arjuna Award to the government, saying such honours have become meaningless at a time when wrestlers are struggling to get justice.
The wrestler left the awards in the middle of the Kartavya Path after Delhi Police stopped her from reaching the Prime Minister's Office.
The new WFI office is located in the Hari Nagar area of New Delhi.
Wushu Association of India president Bhupinder Singh Bajwa will be the chairman of the panel with hockey Olympian M M Somaya and former international shuttler Manjusha Kanwar being the other two members.
Awards have become meaningless when wrestlers are struggling for justice.
The Sports Ministry on Sunday suspended the newly-elected WFI for not following due procedure while announcing the dates for the U15 and U20 National Championships in Gonda, UP.
Brij Bhushan's comments came soon after the Sports Ministry suspended the WFI till further orders after the new body made a 'hasty announcement' of organising the Under-15 and Under-20 nationals.
The Ministry has asked the Indian Olympic Association to constitute an ad-hoc body to control and manage the affairs of the WFI.
'I have already spoken enough. No more comments,' said Thakur.
This comes a day after Bajrang Punia returned his Padma Shri Award in protest against Brij Bhushan Singh's close aide Sanjay Singh's victory in the WFI polls.