Here is the answer. [http://dev.chromium.org/administrators/turning-off-auto-updates][1] from the chrome project.

Here is my overview of the above procedure.

1. To download the Administrative Template, go to http://dl.google.com/update2/enterprise/GoogleUpdate.adm
2. Click Start, and then click Run.
3. Type gpedit.msc, and then click OK.
4. Select Computer Configuration > Administrative Templates
5. Go to ''Actions'' on the menu
6. Select ''Add/Remove Templates...''
7. New window will appear called ''Add/Remove Templates''
8. Press the Add button.
9. Locate adm template earlier and load it.
10. Go under ''Administrative Templates'' there should be a ''Google'' > ''Google update'' > ''Preferences''
11. in the right pane double click on ''Auto-update check period override''
12. New window will appear named ''Auto-update check period override Properties''
13. Select Disabled
14. Click on OK
15. Then close the ''Group Policy Object Editor''
16. Navigate to Administrative Templates > Google > Google Update > Applications > Google Chrome.
17. Modify the Update policy override property to ''Enabled'' and Policy to ''Updates disabled.''

[1]: http://dev.chromium.org/administrators/turning-off-auto-updates