Pardon lady going round home (7)
I believe the answer is:
amnesty
'pardon' is the definition.
(I know that amnesty is a more specific form of the action pardon)
'lady going round home' is the wordplay.
'lady' becomes 'amy' (I've seen this before).
'going round' indicates putting letters inside (some letters go around others).
'home' becomes 'nest' (a bird's home).
'amy' enclosing 'nest' is 'AMNESTY'.
(Other definitions for amnesty that I've seen before include "Organisation concerned with people unjustly imprisoned" , "Men stay (anag.)" , "Dispensation" , "act of forgiveness" , "General pardon - international charity" .)