The decision to terminate Deccan's contract was taken at an emergency governing council meeting of the IPL in Chennai.
The BCCI President N Srinivasan took the final call to end Charger's contract after discussing the issue with other members, a top BCCI official said.
BCCI's working committee will meet tomorrow to decide the future course of action.
The committee will decide whether to float a fresh tender for a new team or allow PVP Ventures, a Hyderabad-based urban infrastructure and film production company, whose Rupees 900 crore bid was rejected by Deccan at the auction yesterday, to take the team.
Deccan Chronicle Holdings, the owner of Deccan Chargers, received a bid of Rs 900 crore by PVP Venture Capitals but surprisingly chose to reject it at the auction as it considered the price and terms unsuitable.
The development brought the BCCI back into the picture.
PVP Ventures may be given the team now.
The late night development comes as a setback for Deccan Chargers which was trying to resolve its financial problems ahead of the 5 pm deadline tomorrow.
