The services of Verma be placed at the disposal of Home Ministry, an order issued by Department of Personnel and Training said.
He was in August 2014 appointed as the CVO in North Eastern Electrical Power Corporation (NEEPCO) -- a mini-ratna company-- for initial period of three years.
The action against Verma comes after the officer was served show cause notice twice, both in May this year, over alleged "misconduct" and "unauthorised absence" from duty.
Verma, a 1986-batch IPS officer of Gujarat cadre, was part of a three-member SIT appointed by the Gujarat High Court to probe the Ishrat Jehan encounter killing case.
He took a different line from the other two members and filed an affidavit in the High Court that the encounter killing could have been staged and also raised doubts over Ishrat being a terrorist of the banned Lashkar-e-Taiba.
He was served in early-May a notice seeking clarification for being "absent" from duty "unauthorisedly" and travelling without permission, official sources said.
Verma in an interview to the media some time back had disputed the claim that Ishrat, who hailed from Mumbra near Mumbai, was a terrorist. He also claimed that the encounter was staged.
Ishrat Jahan, her friend Pranesh Pillai alias Javed Sheikh along with two suspected Pakistanis -- Amjad Ali Rana and Zeeshan Johar -- were gunned down by Gujarat crime branch officials on the outskirts of Ahmedabad in 2004.
Verma was also part of the CBI team whose investigations resulted in charge-sheeting of four IPS officers, including P P Pandey, D G Vanzara, G L Singhal and Rajinder Kumar, retired Special Director of Intelligence Bureau, among others.
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