Alok Kumar Verma yesterday resigned from service, a day after he was removed as the CBI Director by the Indian Prime Minister-led high-powered committee.
Verma refused to join as Director General of the Fire Services, Civil Defence and Home Guards, as per the orders issued by the government late on Thursday.
He alleged that the committee had not provided him an opportunity to explain the details as recorded by the Central Vigilance Commission (CVC) before arriving at the decision.
Alok Verma was suspended in October along with his deputy after they accused each other of bribery and interfering in investigations.
The spat embarrassed the CBI (Central Bureau of Investigation) , which fulfils a similar role to the US Federal Bureau of Investigation, and also led to accusations that the Modi government had damaged the independence of the agency.
India's highest court ordered the government on Tuesday to reinstate Verma, but barred him from taking major policy decisions until the conclusion of the probe.
In his earlier petition to the court, Verma had described his ousting as eroding "the independence of the institution" and its officers' morale. Some critics said the government's actions were part of a wider pattern of government authoritarianism.
A government statement announcing Verma's removal said he had been assigned as director general of fire services. The statement named M Nageshwar Rao as his replacement.
The CBI is investigating several high profile cases, including a $2 billion fraud at Punjab National Bank involving fugitive diamond billionaire Nirav Modi, loan defaults by liquor baron Vijay Mallya and police firing on anti-Vedanta protesters in south India.