The PT Usha-led Indian Olympic Association (IOA) was dealt a severe blow on Friday when the International Olympic Committee announced that it was withholding the Olympic Solidarity grants meant for athlete development programmes.

“There are obvious ongoing internal disputes and governance issues facing the IOA, including a number of reciprocal allegations which have been raised within the Executive Council,” said the letter sent by James MacLeod, NOC Relations and Olympic Solidarity Director.

In the letter, the IOC has said the infighting in IOA has created “lot of uncertainty” that needed clarification. “..until further notice, the IOC and Olympic Solidarity will not make any payments to the IOA, except for direct payments to athletes benefiting from Olympic scholarships,” the letter said.

According to an IOA official, IOC gave Rs 8.50 crore annually for the last four years from its Olympic Solidarity grant. The share provided to national Olympic committees such as IOA includes a share of broadcast rights from the Olympics.

The fresh development has resulted in a war of words between IOA president Usha and treasurer Sahdev Yadav. “The Indian Olympic Association (IOA) is deeply concerned over the severe financial repercussions caused by the failure of the IOA treasurer to file the necessary annual financial reports, despite repeated reminders from the International Olympic Committee (IOC). This negligence will result in the IOA losing out on critical Olympic Solidarity grants for the past few years, dealing a major blow to the IOA's efforts to support Indian athletes,” the IOA said in a press release.

The IOA release said the IOC grants were “a vital source of funding for athlete development programmes and sports initiatives”. Usha had issued a statement on Thursday in wake of a 'no confidence motion' against her, allegedly issued by a group of Executive Committee members led by joint secretary Kalyan Chaubey. She claimed Chaubey's move as invalid and accused him of impersonation.