India's cricket board (BCCI) has written to their West Indies counterparts (WICB) demanding damages for the tour which was abandoned by the Caribbean team last month.
A spokesman for the WICB confirmed they had received a letter from the BCCI "outlining what the BCCI estimates as its losses from the premature end of the West Indies tour of India".
The spokesman said the WICB has 15 days to respond.
Cricket website Cricinfo said it had seen a copy of the letter and reported it contained a demand for US$42 million (NZ$ 54 million) in damages and a warning that legal proceedings would begin if there was no response within the 15 days.
India have already suspended all planned tours of the Caribbean.
The West Indies team returned home after the fourth of five one-day internationals and before three scheduled tests due to a row between players and the WICB over their contracts and payments.
The cause of the conflict was a new 'Memorandum of Understanding' and collective agreement between the WICB and their union, the West Indies Players Association (WIPA), regarding payment for the cricketers which the leading test players said was signed without their consent.
The players said the agreement would result in a significant loss of earnings while the WICB argue the new arrangement allows for more cricketers across the Caribbean to be given central contracts.