On Tuesday, Loshali had contradicted government's claim that the crew on an intruding Pakistani boat had set it ablaze. Defence Minister Manohar Parrikar, the Ministry and the Coast Guard had maintained that when the boat was chased by Coast Guard ships four men on board had set it ablaze.
"DIG B K Loshali was served a showcause notice on February 18. The reply to the notice has been received and is found to be unsatisfactory. Therefore, in accordance with the extant procedures a board of inquiry has been ordered to investigate the details and establish the facts," the Coast Guard said in a release.
It also said the Coast Guard stands by the information released to media by Ministry of Defence dated on January 2 and rejected various media interpretation on the issue of interception of the boat.
The Coast Guard said "suitable action will be taken on receipt of the proceedings of the Board of Inquiry".
"Further it has also been established from the commanding officer of the coastguard ship Raj Ratan rpt Raj Ratan, involved in the operation on the night of December 31, 2014 that he had received no communication from DIG B K Loshali," the release said.
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