Lieutenant General SK Sahni, who retired in 2006, was accused of irregularities in procuring rations for soldiers in Jammu and Kashmir, who were stationed in Siachen and other high altitude areas.
Sahni was also indicted by a report of the Controller of Auditor General (CAG) which revealed that soldiers had been given wheat, rice, pulses and edible oil that was well past their expiry date.
Sahni has been found guilty on six out of nine counts he was charged for.
He is the second officer of Lieutenant General rank who has been court martialled after Lieutenant General PK Rath, who was court martialled in the Sukha land scam.
Lt Gen Rath was found guilty by an Army court of issuing the No Objection Certificate (NOC) to the builder, signing an MoU and not informing the Command Headquarters.