The row over India's participation in next week's Champions Trophy turned ugly after the International Cricket Council clashed with Indian officials over compensation demands. With less than a week to go before the tournament starts, a war of words broke out between ICC and the Board of Control for Cricket in India (BCCI) that threatens to undermine the tournament itself.

Jagmohan Dalmiya, the BCCI president, said he had received a letter from Malcolm Speed, ICC's chief executive, demanding damages of up to $26million if concessions were to be made to Indian players. ICC denied it had sought any compensation, but stressed that if the tournament's official sponsors asked for damages in the wake of India's star players not taking part, the buck would be passed to the BCCI.

Dalmiya summoned an emergency meeting of BCCI's top officials in New Delhi on September 7 amid speculation that ICC was considering the option of cancelling the Champions Trophy.

The latest twist in the ongoing row came after Speed met India's top players on Wednesday to convince them to take part in the tournament. One report suggested ICC had agreed to the Indians' demand to scale down the clause which prohibits players from endorsing products rival to the tournament's official sponsors until 30 days after the event.

But ICC wanted the BCCI to take care of any damages asked for by the sponsors, a demand Dalmiya turned down. "When ICC itself was involved in the discussion with the players, there could be no question of the BCCI compensating for commercial losses, irrespective of the outcome of the discussions," Dalmiya said. "If ICC has offered any alteration or modification in the terms to the players, the BCCI surely cannot be held responsible for the same."

Speed said ICC was not demanding any compensation from India. "Reports in India have suggested that BCCI has been asked to pay compensation to ICC. This is totally untrue," Speed said in a statement. "What has occurred is that BCCI sought a blanket indemnity from any damages claim that may be made in the future against it or ICC in relation to the ICC Champions Trophy. This request was considered by the countries, and it was agreed that such an undertaking could not be given."

In a letter to Dalmiya, Speed said ICC was faced with four options - the first being to cancel the tournament. The second option was to proceed with the Champions Trophy after barring India for failing to field their best team. The third option was to continue with the event and accept a second-string Indian side. The last alternative, Speed said, was to side with the Indian players and scale down the sponsorship contract - provided the Indian board paid any damage claimed by the sponsors.

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