73-year-old Chadha passed away in a hospital here, a university spokesperson said.
He was the first President of the SAARC-established South Asian University and had been associated with the varsity since its inception in 2008.
Chadha was also the former vice chancellor of Jawaharlal Nehru University and also served as member of the Economic Advisory Council to the Prime Minister.
Apart from being a visiting fellow and honorary professor in many institutes and universities across the world, including the University of Mauritius and Shenzhen University, he was also a consultant to several international development organisations including United Nations agencies such as FAO, ILO, UNCTAD and ESCAP.
Chadha is survived by his wife, son and daughter.
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