Mr Mishra was transferred and posted as Chairman-cum- Managing Director, Jammu and Kashmir Police Housing Corporation, a Jammu and Kashmir government order said.
The decision to transfer Mr Mishra was made at a Cabinet meeting chaired by Chief Minister Mehbooba Mufti.
Dilbag Singh, a 1987 batch IPS officer, replaced him.
Mr Mishra's transfer comes just two days after 22-year-old Lashkar-e-Taiba terrorist Naveed Jutt staged a daring escape from SMHS Hospital with the help of two other terrorists.
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