He passed away around 10 PM due to multiple organ failure at Manipal Hospitals in Goa, a hospital official said.
His office confirmed that Chandra was admitted to the hospital on Friday.
Chandra had served as the Cabinet Secretary from 1990-92 and was the Indian Ambassador to the US from 1996 to 2001.
He was awarded India's second highest civil awards, the Padma Vibhushan, in 2007.
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