"I am in a lot of pain and have no choice but to withdraw," said the captain, who underwent minor surgery on Tuesday to clear an abcess in the upper left thigh.
Ganguly's absence will be sorely felt by the Indian team. He has impressive record at Mohali, scoring 222 runs in three matches at an average of 74.00 with a century and a half-century.
His best of 109 at Mohali came against Sri Lanka in November 1997.
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