The officer, a father of two young children, was doing his Higher Defence Management Course (HDMC) in Secunderabad when he allegedly came in contact with the woman with whom he had an alleged illicit affair, sources said here.
After some time, the woman allegedly asked the officer to marry him but he refused, saying he was married and was not willing to get a divorce from his wife, they said.
Later, the woman sent a complaint to Navy chief Admiral D K Joshi against the officer and is also learnt to have provided some proof of her intimate relationship with him, the sources said.
The officer, who is now attached with the Naval Headquarters here, has been issued a show cause notice by the force to explain his conduct and asked why action should not be taken against him in the case, they said.
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The officer, if found guilty, could face action ranging from 'severe displeasure' to dismissal from service, Navy officials said.
Taking a strong view in one such case, the Defence Ministry and the Navy had ordered sacking of Commodore Sukhjinder Singh after he was caught having a relationship with a Russian woman while overseeing the important Admiral Gorshkov aircraft carrier project in that country.
A Commander-rank officer posted on board the aircraft carrier INS Viraat was also dismissed after he was found guilty of sending lewd messages to several women using multiple sim cards.