Pandey replaces Hemant Nagrale who was brought in place of Param Bir Singh.
Pandey, who retires in June, was last month given a side-posting as managing director of the Maharashtra State Security Corporation after a PIL was filed in the Bombay high court, challenging his appointment as state DG.
The PIL said he was not in the panel of three officers cleared by the UPSC.
The petitioner urged the court to have a permanent DG as Pandey was holding additional charges of the state police.
After the high court indicated its displeasure, the state replaced him with IPS officer Rajneesh Seth. Pandey immediately proceeded on leave. Subsequently, in a social media post, he expressed his disappointment with the manner the case played out in the court.