Chappell, a 58-year-old Australian, won't seek an extension of his contract that expires at the end of this month, the Board of Control for Cricket in India, or BCCI, said today. He took on the post in June 2005.
He ``has indirectly resigned,'' Niranjan Shah, secretary of the BCCI, said in a phone interview from Mumbai.
Chappell is due to meet board officials April 6 when an audit will seek to establish why India, the 1983 champion and runner-up four years ago, didn't advance beyond the first round of the World Cup. India's failure, combined with Pakistan's surprise exit, may leave sponsors in the region nursing losses of as much as 1.5 billion rupees ($35 million), according to WPP Group Plc's MindShare media arm.
India lost to Bangladesh, which had previously beaten its larger neighbor once in 14 attempts, and Sri Lanka to leave the Caribbean early. Chappell's team was the pre-tournament third favorite behind Australia and South Africa.
In a statement on cricket Web site Cricinfo.com, Chappell said he was stepping down for ``family and personal reasons.''
The job ``remains one of the most challenging coaching positions in world cricket,'' he said. ``I wish Indian cricket and all those involved with it much joy and success in the future.''
`Full Responsibility'
His departure comes the same day as India's Sachin Tendulkar, the highest run-scorer in the one-day form of the game, hinted at player unrest by defending himself against criticism attributed to the coach.
The 33-year-old told the Times of India players took ``full responsibility'' for the World Cup disaster and what hurt most was ``if the coach has questioned our attitude.'' Chappell's brother Ian, also a former Australia captain, last week said Tendulkar was a ``shadow of his former self'' who should consider retiring. Tendulkar was dismissed without scoring in what turned out to be the decisive loss to Sri Lanka.
Chappell's tenure included a record-breaking run of India winning 17 one-day matches while batting second, and a Test series win in the West Indies. Young players such as Shanthakumaran Sreesanth and Dinesh Karthik broke into the team as the talents of veterans Tendulkar and Anil Kumble began to wane.
Chappell caused national outrage in 2005 when his e-mail to India's ruling body was leaked accusing captain Sourav Ganguly of being unfit to lead the team. The BCCI brokered a truce and 16 days later Ganguly was axed as captain.
Effigies Burnt
Three months later, effigies of Chappell were burnt in Ganguly's home town of Kolkata after he was dropped from the team. Ganguly won back his place in the World Cup squad and opened the batting.
A right-handed batsman, Chappell played for South Australia, Queensland and English county Somerset in an 18-year career. He scored a century in his Test debut against England, adding a further ton and a double-hundred in his first match after succeeding brother Ian as captain.
He won 21 of his 48 Tests in charge and quit international cricket in 1984 after scoring 7,110 runs at an average of 53.86. Before taking the India job, he coached South Australia and worked as a consultant at Pakistan's national academy.