Lt. General Sahni is the highest-ranking military officer to face such ignominy.
Casheiring from service would entail the withdrawal of all perks he enjoys as a retired officer of the Army, including pension.
A report by the Controller of Auditor General (CAG) had paved way for action against Sahni.
The General Court Martial proceedings were conducted and concluded late on Friday at Headquarters 11 Corps in Jallandhar Cantt.
He was accused of irregularities in procuring rations for soldiers in Jammu and Kashmir, who were stationed at Siachen and other high altitude areas.
The order is subject to confirmation by the Ministry of Defence. (ANI)