Shreyas Iyer will lead India B while Ajinkya Rahane was announced skipper of India C.
Hyderabad will now face Mumbai in the first semi-final on Wednesday.
DK has only managed scores of 33, 31*, 1*, 44 and 37 in his last five innings.
Rahul was dismissed for a duck in the first Test against West Indies at Rajkot.
Virender Sehwag cited examples Ravindra Jadeja, Yusuf Pathan, Mohammed Siraj, David Warner and Glenn Maxwell to buttress his view.
India have won the Test and ODI series against Sri Lanka and now head to the three match T20I series starting December 20.
Indian Premier League (IPL) has been a wide platform for India's domestic talents to rub shoulders with some big names in world cricket.