The government withdrew the recognition to Hockey India for violating its guidelines, barely a few hours after HI completed its controversial elections.
The government took the step after finding Hockey India's reply to a show cause notice unsatisfactory.
The HI was asked to explain why they should not be derecognised in the wake of their declaration before the Delhi High Court that they are a private body.
Rejecting all the contentions of Hockey India, the Sports Ministry in a letter to both President and Secretary General of HI terminated the provisional recognition.
According to the letter, HI in its reply said they are a private body because it is autonomous and independent of the Government, which should not be a cause for de-recognition.
However, the government rejected the explanation and said their contentions are not legally tenable.
"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," the letter issued by the Government under secretary Shankar Lal said.
"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," the letter read further.
Making a case for itself Hockey India contended that it has the recognition of the Indian Olympic Association (IOA) and the International Hockey Federation (FIH) and, therefore, HI alone can represent the country in international competitions.
HI further said that the government recognition is no more than a ministerial act for the purpose of extending financial assistance, which HI is not seeking anymore.
Rejecting this stand, the Ministry said, "Unlike the normal practice where NSFs are independent of the IOA, HI was registered by the IOA. HI was recognized by the Government under very compelling circumstances even though it was an "instantly made NSF" that had no legitimate track record of promoting, developing and regulating the sport in India.
"The very fact that it was promoted by the IOA contradicts the present claim of HI of being a private body.
However, since HI has refused to accept its public character and has failed to abide by the Government guidelines, it cannot continue to enjoy the Government recognition."
In another contention, the Hockey India said since matters relating to recognition, the conduct of elections, and the scope of the applicability of the Government guidelines are sub-judice before the Supreme Court of India and High Court of Delhi, no action may be taken pending disposal of the matter by the Courts.
But the government countered the HI stand by saying, "It may be stated that the issue of Government recognition is not sub-judice. Moreover, HI on its own has discarded the Government recognition. The Government is only making it formal now by issuing a formal order to that effect."
A copy of the letter has also been marked to FIH and also to the President and the Secretary General of Indian Olympic Association.