Chauhan, who played 'Yudhishthir' in "Mahabharat", was appointed as the FTII chief last month. This was followed by protests from students, who believe he lacks the stature and vision to head the institution.
After several film celebrities supported the voice of the students, the 62-year-old actor took to micro-blogging website Twitter to express his opinion.
"Advice. After all the protests and controversy, Gajendra Chauhan, the FTII Chairman should voluntarily retire. Will do good to the students.
"If they don't want you, they don't want you. By pushing for the chairmanship is getting you no where.Let self pride play a role and retire," Rishi, who belongs to Indian cinema's globally popular Kapoor clan, tweeted.
Earlier, his son, actor Ranbir Kapoor too expressed support for the students, stressing on how it is only legitimate for them to demand a chairperson, who is an "aspirational figure" that they can look up to.