Prominent Sydney business identity Danny Bhandari will know his fate by the end of the week after an incident in a second grade game for University of NSW against Manly on Saturday.

Fairfax Media understands Bhandari, who is also on the board of government body Venues NSW, is under investigation after allegedly hitting an opponent following his dismissal for a duck.

The report is currently before the Sydney Cricket Association's independent code of conduct commissioner John McGruther, who can throw the case out, propose a penalty for the player to accept or reject, or refer the case straight to the judiciary.

Manly is believed to be furious over the episode and will send the player who was allegedly struck, their second grade captain and a club official to any hearing if the case goes to the judiciary.

CNSW issued a statement on Wednesday saying Bhandari was standing down until the case was resolved.

CNSW chairman John Warn said that while procedural fairness was vital, the reputation of the game was paramount.

"All Cricket NSW board members have a special responsibility to uphold the spirit and values of cricket," Warn said.

"It is therefore appropriate that Danny stands down while the matter is considered by the Sydney Cricket Association's independent Code of Conduct Commissioner John McGruther.

"Cricket NSW respects due process including Danny's right to respond to the reports and will not be making any further comment until the matter is resolved."

UNSW says it is standing by Bhandari, who has served as a player and administrator at the club for 18 years. Bhandari was 87th in the BRW Young Rich list of 2016 with an estimated wealth of $29 million.

"Danny is a tireless and long-time volunteer to the club and to the game of cricket," UNSW said. "Danny has the full support of the club and we are confident that he will be cleared of any breach of the code of conduct and that he has no case to answer. We have faith in the SCA judiciary committee and will allow the proper process to take place before commenting further."

A Venues NSW spokesman said it was inappropriate to comment while the case is ongoing.

Bhandari did not respond to Fairfax Media's request for comment.