The withdrawal of the recognition to HI came after the government found its reply to a show cause notice unsatisfactory.
The governing body had been asked to clarify why it should not be derecognised after its declaration before the Delhi High Court that it is a private body.
In its reply, HI had reportedly said they are a private body because it is autonomous and independent of the Government, which should not be a cause for de-recognition.
Unhappy with HI's arguments, the sports ministry sent a letter to President and Secretary General of HI terminating the body's recognision on Thursday, Aug 5.
The letter issued by the Government under secretary Shankar Lal read, "HI has derived its entire authority only after government gave clearance to them for using the name of 'Hockey India' and to register themselves as an NSF to direct, control and regulate the sport of Hockey in India."
"Further, HI duly accepted the conditions attached to that recognition and also sought the clearance of the Government for holding their elections. But their subsequent refusal to abide by the Government guidelines has made them liable for derecognition.
"As per the Government guidelines, of which the May 1st, 2010 order is an integral part, no NSF can represent the country in international fora without the Government recognition whether or not it receives Government grants," it added.