The Technical Support Division with 30 personnel was set up in 2010 by Gen Singh and was allegedly involved in snooping on phone conversations of senior Ministry officials during the age controversy involving the former Army Chief.
All the officers have been posted out and it is not clear when fresh officers would be sent there, Army sources said here.
They said the future of unit was also not yet clear.
Soon after taking over, Gen Bikram Singh had constituted a Board of Officers under Director General Military Operations Lt Gen Vinod Bhatia to initiate the process to disband the unit.
The Board of Officers was also looking into allegations of expenditure of more than Rs 20 crore by the TSD and its officers within around one year.
The TSD was reporting directly to the then Army Chief Gen V K Singh and it was alleged that the unit may have snooped on the conversations of people even outside the Defence Ministry using its off-the-air interceptor equipment.
Recent reports suggested that the Committee is also looking into the alleged misuse of Military Intelligence funds to file court cases against senior officers.
