Former Indian Premier League champions Rajasthan Royals face suspension from the cash-rich cricket tournament after a co-owner admitted to betting on Twenty20 matches.
The Board of Control for Cricket in India has called an emergency meeting of its working committee in New Delhi to discuss the fate of the team which is captained by Rahul Dravid.
Raj Kundra, co-owner of the Royals alongside his Bollywood actress wife Shilpa Shetty, has admitted to illegal gambling on the competition, according to police.
He has since been ordered to hand over his passport.
According to an agreement between the BCCI and IPL sides, if any franchise group or owner acts in a way which has a "material adverse effect" on the reputation of the BCCI or the league, then their agreement will be terminated.
The Rajasthan Royals said in a statement that Kundra would be suspended if proven guilty and he would also forfeit his shares.
The statement added that Kundra is an 11.7 percent shareholder and has no involvement in the running of the franchise.
The Rajasthan Royals, who won the inaugural IPL edition in 2008 under Australian spin legend Shane Warne, have been thrown out of the IPL before because of ownership issues.
But that decision was reversed by an Indian court in 2010.
Three Royals players and numerous bookmakers are among those arrested over allegations of spot-fixing and betting during the recently-completed edition of the IPL.