The Board of Control for Cricket in India (BCCI) said in a statement that Dalmiya, 65, would not take part in its activities till a probe into his alleged financial deals was completed.
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"BCCI president Sharad Pawar wrote to Dalmiya informing him that he was being suspended from participating in the affairs of the board until adjudication of the charges," BCCI treasurer N. Srinivasan said.
Srinivasan said Dalmiya had been accused of mishandling funds of around 890,000 dollars relating to the 1996 World Cup which India hosted jointly with Pakistan and Sri Lanka.
Dalmiya, who was organising secretary of that event, later served as the president of the International Cricket Council (ICC) for three years from 1997 to 2000.
Since 1983, he had been the most powerful figure in the BCCI until his faction was thrown out by Pawar, a political heavyweight and federal agriculture minister, in a bitter election in November.
The new BCCI regime filed a police complaint against Dalmiya last month ove