Two officials with knowledge of the decision say the International Olympic Committee has suspended India's national Olympic body because of government interference, Associated Press reports.
The decision comes just a day before the Indian Olympic Association's elections.
According to Associated Press, the IOC executive board imposed the sanctions on Tuesday after the Indian Olympic Association failed to comply with the world body's directive to hold its elections, scheduled for Wednesday, under the Olympic Charter.
The officials spoke on condition of anonymity because the official announcement hadn't been made yet, the AP news agency said.
The IOC had repeatedly told the Indian body to adhere to its own constitution and the Olympic Charter and not follow the government's sports code for the elections.
Suspension means the IOA will stop receiving IOC funding and its officials will be banned from attending Olympic meetings and events.
India's athletes will be barred from competing in Olympic events under their national flag.