The termination of Bhagwat's services with immediate effect comes in the wake of a row between him and the government over the selection of a new deputy chief of naval staff, with the appointments committee of the cabinet clearing the name of vice-admiral Harinder Singh for the post against the wishes of the navy chief.

The government said that it was "fully conscious" of the gravity of the decision, which had been taken after "adequate, careful and serious consideration" at the highest levels. In a swift move, vice-admiral Sushil Kumar, flag officer commanding-in-chief, southern command, was appointed the new chief of the naval staff from Wednesday afternoon. Kumar was in Delhi, and has received the order.

Defence secretary Ajit Kumar, who was also one of those involved in the controversy over the appointmentof the deputy chief of naval staff, was simultaneously transferred to the department of industrial development and promotion. TR Prasad, secretary, industrial development and promotion, was appointed the new defence secretary.

The government statement said: "For some time, the officer (Bhagwat) has been taking a series of actions in deliberate defiance of the established system of cabinet control over the defence forces. The government recognises that there is a need to insulate the defence forces in this country so as to preserve their identity forged over many decades but deliberate defiance of the government cannot be accepted in any democratic society. There are a number of cases where democratic countries have had to exercise such a prerogative."

The centre said there was a need to preserve a balance between the interests of national security and the right of the people of the country to be informed of the "compulsions" which led the government to take such a decision.

"It is in this context thatit is reiterated that the decision was taken, consciously and deliberately, in the face of action, which threatened the established structures of democracy, the traditional neutrality and objectivity of our armed forces, as well as national security," the statement said.