Major General G I Singh, the former commanding officer of a mountain division, has been stripped of his rank after being found guilty by an army court of smuggling liquor and misappropriating money, sources said on Thursday.
The army's central command had initiated a court of inquiry against Singh, who was earlier general officer commanding of 6 Mountain Division, to probe allegations of misappropriation of money and illicit sale of liquor.
The inquiry led to Singh's trial by a general court martial that found him guilty, the sources said.
According to the allegations, four truck-loads of army liquor sent by Singh to Sangrur in Punjab, his hometown, were seized at Dehradun.
The army liquor, which is provided at subsidised prices to soldiers, was to be sold in the open market, sources said.
The army has in recent years cracked down on officers accused of selling liquor and fuel from official stores in the open market.
In December 2004, a brigadier was sentenced to nine months rigorous imprisonment after being found guilty of illicit sale of liquor and fraud.
The army had then said it had put in place measures to prevent the recurrence of such incidents, including steps to streamline and monitor the drawing of liquor from canteens.