The decision to strip him of the charge of prisons came shortly after he expressed regret over the comments having legal bearings on the T P Chandrasekharan murder case while speaking to the media yesterday.
According to government sources, T P Senkumar, ADGP (Intelligence), has been given additional charge of prisons.
Jacob's removal marked the finale of days long row over alleged use of mobile phone and Facebook postings by some of the accused in the case lodged as undertrials in the district jail in Kozhikode.
His justification for the meeting of one of the accused, a local CPI(M) functionary, with his wife and MLA K K Lathika while being taken to hosptial a few weeks back also found serious fault with the government and the ruling party.
In his response to the clarification sought by Home Minister, Jacob had expressed regret over his comments.
Chandrasekharan, who floated his own outfit RMP after quitting CPI(M), was hacked to death in May 2012 near his native village Onchiyam. Many accused are local CPI(M) workers, apart from goondas allegedly hired to execute the murder.
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