Holders India did not submit its squad for the one-day international tournament in England and Wales by the April 25 deadline after BCCI failed to halt a new revenue model to be accepted by the International Cricket Council (ICC).
The option of pulling out of the Champions Trophy by revoking the Members Participation Agreement (MPA) between the ICC and the BCCI has been gaining traction within the India board, which will discuss the issue at a special general meeting on Sunday.
The four court-appointed administrators, who currently supervise BCCI operations, have instructed the board to ensure that the team continued their preparations to defend their title.
"You are aware that the squad representing India at the ICC Champions Trophy 2017 was to be submitted by 25th April 2017 but the squad has not even been selected as yet," the administrators told BCCI joint secretary Amitabh Choudhary in an email.
"Please convene a meeting of the selection committee for selecting the squad immediately. The squad can then be submitted to the ICC without prejudice to BCCI's legal rights."
The BCCI was outvoted 13-1 last week at the ICC meetings in its bid to stall the new deal which considerably slashes India's share from global events in the 2015-2023 cycle.
India is now expected to receive $293 million (£227.4 million), down from the $570 million it would have received under the 2014 arrangement.
(Reporting by Sudipto Ganguly; editing by Amlan Chakraborty)
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