International Olympic Committee president Thomas Bach has said that India face expulsion from the Olympic movement unless they comply with ethics rules, according to reports.
According to the BBC, India were suspended by the IOC last year because of government interference in its election process.
They have yet to agree to IOC demands to bar officials who have been charged with a criminal offence, an impasse, which has led to the final ultimatum, the report said.
The Indian body is due to meet on Sunday to consider their position, the report added.
Bach said that the Olympic charter is clear and if the suspension leads to no solution, then further steps could be withdrawal of recognition.
No country has been banned from the Olympics since the South Africa team was expelled between 1968-1988 during the apartheid era, the report said.
India won two silver medals and four bronze at the London Olympics last year, the report added.