Eoin Morgan is fuming at umpire Chettithody Shamshuddin
England needed eight runs from the last over but could only manage two – as well as losing two wickets – to lose by five runs.
The first of those wickets was Joe Root off the first ball of the last over, given out lbw for 38 despite a thick bottom edge of the bat on to his pads.
Indian umpire Chettithody Shamshuddin was responsible for that howler and had earlier denied England two wickets in India’s innings with two shocking decisions that favoured Virat Kohli and Yuvraj Singh.
Assistant coach Paul Farbrace was seen having strong words with Shamshuddin as the players left the field and skipper Morgan confirmed that England will make an official complaint to match referee Andy Pycroft before the series decider in Bengaluru on Wednesday.
He was not originally scheduled to stand in this match though he is listed for Bengaluru so England may meet their nemesis again.
Morgan said: “There is extreme frustration – the decision at the start of the 20th over shifted momentum.
England's top 10 overseas Test victories
Wed, December 30, 2015
Express Sport takes a look at England's 10 best overseas Test victories
Patrick Eagar via Getty Images
1 of 10
England headed to Sydney with the 2010-11 Ashes in the bag but a series win was at stake. Hundreds from Alastair Cook, Ian Bell and Matt Prior set up a total of 644 before the seamers forced the tourists to an innings win
“It was a hammer blow and it proved costly but we still should have won the game – we played really well.
“The bowlers backed up their performance from the other night on a pitch that suited India more. We were always in a reasonable position in the chase and we should have won the game.”
The captain was also bemused that the decision review system is not used in T20 internationals, saying: “It is surprising. If we’d lost a World Cup match like that we’d be spewing. There’s no reason why it shouldn’t be used.”
England had restricted India to a modest total of 144 for eight on a slow, tricky pitch that was hard to score on.
After England had lost both their openers in successive deliveries, Root and Morgan steadied the ship with 43 in 41 balls for the fourth wicket before Morgan holed out to deep mid-wicket.
Ben Stokes had a huge stroke of luck first ball when he was bowled off a no-ball but then took the innings by the scruff of the neck by smashing part-time off-spinner Suresh Raina for four and six in two balls of the 14th over.
He then launched leg-spinner Yuzvendra Chahal for a straight six and flicked seamer Jasprit Bumrah through mid-wicket for a perfectly-placed four.
Stokes’ departure for 38 stalled England’s innings briefly but Jos Buttler played some audacious shots and hit 16 off the penultimate over to leave England in pole position with one over to go.
But man-of-the-match Jasprit Bumrah – after being handed the Root dismissal from umpire Shamshuddin – held his nerve, bowling Buttler and denying Moeen Ali, who needed to hit the last ball for six, at the death.
Earlier, England’s bowlers assessed the conditions very quickly, realising that taking pace off the ball was the obvious tactic.
The 20 greatest Test cricketers of all-time
Sat, November 14, 2015
Express Sport takes a look at the greatest ever Test cricketers
1 of 20
Wasim Akram: Together with Waqar Younis he invented and perfected the art of reverse-swing, proving that bowling on dead, concrete-like pitches in the sub-continent can be overcome
Chris Jordan was outstanding, taking three for 22 – his most economical four-over spell in a T20 for England. He took the vital wicket of Kohli for 21 with a 64mph slower ball which the Indian skipper slogged high in the air to Liam Dawson at long on.
But early in the innings England were denied two wickets by two appalling decisions from Shamshuddin, who turned down obvious lbws against Kohli and Yuvraj Singh.
Kohli had made only seven when Jordan went up for a leg-before shout. Despite the ball hitting him on his bent back leg, Mr Shamshuddin turned down the appeal. Replays showed it would have hit halfway up middle stump.
Six overs later spinner Moeen Ali thought he had Yuvraj but again Shamshuddin said not out and, again, replays showed he was wrong.
Opener KL Rahul anchored the innings with a superb 71 from 47 balls – the highest T20 score by an Indian against England – while only two other batsmen reached double figures.