Action against Shashi Karnawat, who was placed under suspension in October 2013, was taken under the provisions of the All India Service (Discipline and Appeals) Rules, 1969.
The services of Karnawat, a 1999-batch IAS officer, have been terminated in agreement with the advice of the Union Public Service Commission (UPSC) and orders of the Government of India, a Public Relations Department official said.
The termination orders were issued yesterday, he said.
Karnawat was deputy secretary in the youth and sports welfare department prior to her suspension.
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"In a corruption case registered by the State Economic Offences Investigation Bureau in connection with the loss of around Rs 33 lakh to the state government and illegal profiteering in the printing work of forms (of various government schemes), Karnawat was sentenced to five years in prison by a special Mandla district court in September 2013.
"After the sentencing, the state government suspended her in October 2013," the official added.
The court had also found her guilty under IPC sections relating to "cheating and acts done by several persons in furtherance of common intention" and awarded her five years in jail. These punishments were to run concurrently, the official added.
Following the conviction, Karnawat was served a show cause notice in October 2014 for the termination of services under All India Services (Discipline and Appeal).
"Despite being given sufficient opportunity, the final and complete reply to the notice could not be presented by Karnawat. Therefore, the proposal of her dismissal from the services was sent to the Government of India. The UPSC also expressed its agreement with the proposal," the official said.