"I think it time for Dhoni to go and may be it is right time for Kohli to come in as captain," Chappell told PTI in an exclusive interview here.
"Certainly, he (Dhoni) is not a Test captain. I think he is a good captain in shorter-version of the game. I don't think there would be a problem to give it Kohli now, though," he said.
"Indian selectors do not have the ruthless quality as Australian selectors have. They wait for the guy to retire. I mean after he (Dhoni) lost 4-0 to England and Australia, if he would have been an Australian captain he would have gone. He did nothing to inspire the team," he said.
"You can always loose, that is fine, but you go down fighting. I did not find him do that. To me the captain has lost his usefulness and it is time for him to go."
Also Read
"I don't think captaincy would affect Kohli adversely because he is a very strong character and is a confident cricketer. So he can work out (things) as a captain. At 27, you have got four to five years for a player to peak, and it is crucial to give the guy the captaincy.
"No good giving him captaincy at the age 32 to 33, when he is started to go over the top. You got to give him his best chance," he opined.
Chappell said the biggest problem for the Indian team is selection as he put question mark over Stuart Binny's place in the playing XI in the first Test against England.