Chapman had filed a complaint addressed to the Chief of the Army Staff against the officer.
The court martial was held from April 16, 2012 to February 11, 2013 in Jaipur, said Col SD Goswami, defence spokesperson.
"The officer was tried for communicating information to a foreign national regarding Official functioning contrary to Indian Official Secrets Act 1923, amassing assets disproportionate to his known source of income, for improperly remaining in contact with Nancy Chapman of USA, and improperly accepting of Rs. 17.5 lakh from her," Goswami said.