The hooker was chosen on the basis of his Kiwi great-grandmother, but this was not enough for him to qualify for the New Zealand team.
Bennett said: "There has to be a scapegoat, and I've put my hand up. I was the one who ordered the birth certificate to be sent to the Australians, I was the one who verified it. They've got their scalp."
The NZRL board said that Andrew Chalmers has been chosen as Bennett’s replacement till the elections take place at their next annual general meeting.
Chalmers said: "Selwyn has acknowledged that he was solely responsible for the decision to rule Fien eligible, and the NZRL board has accepted his resignation."
The NZRL apologised for the incident, but Bennett was not sorry for what happened.
He said: "In hindsight I would probably make the same decision. I still believe I was right in what I did. I have no problem with great-grandmothers or grandmothers, call them what you like."
However, Kiwi selector Darrel Williams took a different view of the controversy, hitting out at the NZRL.
He said: "They've shown that they're incompetent and it doesn't make me happy. I put the blame fairly and squarely on New Zealand Rugby League."