Earlier this month, a three-member BCCI disciplinary committee found Modi guilty of financial and administrative irregularities during his stint as the IPL chairman.
"Mr. Lalit Modi is guilty of committing acts of serious misconduct and indiscipline, and therefore ... is hereby expelled from the BCCI," the board said in a statement after its meeting in Chennai.
"He shall forfeit all his rights and privileges as Administrator. He shall not in future be entitled to hold any position or office, or be admitted in any committee or any member or associate member of the board."
Modi, who has denied any wrongdoings, was suspended as chairman and commissioner of the IPL in April 2010 soon after the third edition of the Twenty20 League.
The cash-rich tournament was hit by a spot-fixing scandal this year which prompted BCCI to slap former India fast bowler Shanthakumaran Sreesanth and another Indian cricketer with life bans.