The decision was taken at a meeting of the Executive Committee held at the PCA Porvorim yesterday.
Sandhu was contracted for a sum of Rs 40 lakh by former GCA president, Dayanand Narvekar.
The decision to terminate his service was conveyed to Sandhu, however, the GCA management gave him an option to head the coaching for Rs 20 lakhs, which he rejected.
Meanwhile, Prakash Phadte and Shrikrishna Tari, both Narvekar loyalist, have joined the newly elected GCA president Vinod Phadke's camp, thus taking their to 13 in a group of 15 executive committee members.
Daya Pagi is now the only supporter of Narvekar left in the camp.