diff --git a/mifosng-db/patches/patch-0004_Add_soft_deleted_flag_for_group.sql b/mifosng-db/patches/patch-0004_Add_soft_deleted_flag_for_group.sql
new file mode 100644
index 000000000..1c616ebc8
--- /dev/null
+++ b/mifosng-db/patches/patch-0004_Add_soft_deleted_flag_for_group.sql
@@ -0,0 +1 @@
+ALTER TABLE `portfolio_group` ADD COLUMN `is_deleted` tinyint(1) NOT NULL DEFAULT 0 AFTER `external_id`;
diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/api/GroupsApiResource.java b/mifosng-provider/src/main/java/org/mifosng/platform/api/GroupsApiResource.java
index 3b51f7dff..05a0cdc5b 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/api/GroupsApiResource.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/api/GroupsApiResource.java
@@ -6,6 +6,7 @@ import java.util.HashSet;
 import java.util.Set;
 
 import javax.ws.rs.Consumes;
+import javax.ws.rs.DELETE;
 import javax.ws.rs.GET;
 import javax.ws.rs.POST;
 import javax.ws.rs.PUT;
@@ -108,5 +109,16 @@ public class GroupsApiResource {
 
         return Response.ok().entity(entityIdentifier).build();
     }
+    
+    @DELETE
+    @Path("{groupId}")
+    @Consumes({ MediaType.APPLICATION_JSON })
+    @Produces({ MediaType.APPLICATION_JSON })
+    public Response deleteGroup(@PathParam("groupId") final Long groupId, @Context final UriInfo uriInfo){
+
+        EntityIdentifier entityIdentifier = this.groupWritePlatformService.deleteGroup(groupId);
+
+        return Response.ok().entity(entityIdentifier).build();
+    }
 
 }
diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/group/domain/Group.java b/mifosng-provider/src/main/java/org/mifosng/platform/group/domain/Group.java
index 2c5e63554..3a38a4cb4 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/group/domain/Group.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/group/domain/Group.java
@@ -20,6 +20,9 @@ public class Group extends AbstractAuditableCustom<AppUser, Long> {
     @Column(name = "external_id", length = 100, unique = true)
     private String externalId;
 
+    @Column(name = "is_deleted", nullable=false)
+    private boolean deleted = false;
+    
     public Group() {
         this.name = null;
         this.externalId = null;
@@ -51,4 +54,18 @@ public class Group extends AbstractAuditableCustom<AppUser, Long> {
             this.name = command.getName();
         }
     }
+    
+    /**
+     * Delete is a <i>soft delete</i>. Updates flag on group so it wont appear in query/report results.
+     * 
+     * Any fields with unique constraints and prepended with id of record.
+     */
+    public void delete() {
+        this.deleted = true;
+        this.externalId = this.getId() + "_" + this.externalId;
+    }
+
+    public boolean isDeleted() {
+        return deleted;
+    }
 }
diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupReadPlatformServiceImpl.java b/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupReadPlatformServiceImpl.java
index 448de8726..bb43e610d 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupReadPlatformServiceImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupReadPlatformServiceImpl.java
@@ -34,7 +34,7 @@ public class GroupReadPlatformServiceImpl implements GroupReadPlatformService {
 
         GroupMapper rm = new GroupMapper();
 
-        String sql = "select " + rm.groupSchema();
+        String sql = "select " + rm.groupSchema() + " where g.is_deleted=0";
 
         return this.jdbcTemplate.query(sql, rm, new Object[] {});
     }
@@ -47,7 +47,7 @@ public class GroupReadPlatformServiceImpl implements GroupReadPlatformService {
             
             GroupMapper rm = new GroupMapper();
             
-            String sql = "select " + rm.groupSchema() + " where g.id = ?";
+            String sql = "select " + rm.groupSchema() + " where g.id = ? and g.is_deleted=0";
             
             return this.jdbcTemplate.queryForObject(sql, rm, new Object[] {groupId});
         } catch (EmptyResultDataAccessException e){
diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformService.java b/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformService.java
index b489af5b9..ba0367cfe 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformService.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformService.java
@@ -12,4 +12,7 @@ public interface GroupWritePlatformService {
     @PreAuthorize(value = "hasAnyRole('PORTFOLIO_MANAGEMENT_SUPER_USER_ROLE')")
     EntityIdentifier updateGroup(GroupCommand command);
 
+    @PreAuthorize(value = "hasAnyRole('PORTFOLIO_MANAGEMENT_SUPER_USER_ROLE')")
+    EntityIdentifier deleteGroup(Long groupId);
+    
 }
diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformServiceJpaRepositoryImpl.java
index 9025052e4..d7f8a0f1e 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/group/service/GroupWritePlatformServiceJpaRepositoryImpl.java
@@ -7,6 +7,7 @@ import org.mifosng.platform.group.domain.Group;
 import org.mifosng.platform.group.domain.GroupRepository;
 import org.mifosng.platform.security.PlatformSecurityContext;
 import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.security.access.prepost.PreAuthorize;
 import org.springframework.stereotype.Service;
 import org.springframework.transaction.annotation.Transactional;
 
@@ -49,7 +50,7 @@ public class GroupWritePlatformServiceJpaRepositoryImpl implements GroupWritePla
         validator.validateForUpdate();
         
         Group groupForUpdate = this.groupRepository.findOne(command.getId());
-        if (groupForUpdate == null){
+        if (groupForUpdate == null || groupForUpdate.isDeleted()){
             throw new GroupNotFoundException(command.getId());
         }
         groupForUpdate.update(command);
@@ -59,4 +60,20 @@ public class GroupWritePlatformServiceJpaRepositoryImpl implements GroupWritePla
         return new EntityIdentifier(groupForUpdate.getId());
     }
 
+    @Transactional
+    @Override
+    public EntityIdentifier deleteGroup(Long groupId) {
+        
+        context.authenticatedUser();
+        
+        Group groupForDelete = this.groupRepository.findOne(groupId);
+        if (groupForDelete == null || groupForDelete.isDeleted()){
+            throw new GroupNotFoundException(groupId);
+        }
+        groupForDelete.delete();
+        this.groupRepository.save(groupForDelete);
+        
+        return new EntityIdentifier(groupId);
+    }
+
 }