The 2021 Men's World Boxing Championships have been moved to Belgrade from New Delhi, the International Boxing Association (AIBA) said on Tuesday.
In a statement, AIBA said it had terminated New Delhi's contract after it did not pay an agreed host fee, meaning that India will have to pay a cancellation penalty of $500,000.
The Boxing Federation of India (BFI) blamed AIBA for its inability to pay the host fee, saying that AIBA's bank account in Lausanne was "frozen".
"AIBA could not resolve these issues," Indian media quoted the BFI as saying.
"We have reasons to believe that the decision to change the venue of WCH-2021 was taken in haste without due consultation with BFI ... the penalty that is imposed is shocking and surprising."
The BFI added that it feels it has no obligation to pay any cancellation or penalty fees to AIBA and is working towards "an amicable solution".
The AIBA was last year stripped by the International Olympic Committee (IOC) of its right to run boxing at the Tokyo Games due to serious mismanagement.
Boxing competition at the Tokyo Games, which have been postponed by a year due to the coronavirus pandemic, is instead being organised by the IOC Boxing Task Force.
AIBA interim president Mohamed Moustahsane said there are plans to hold the world championships after the rescheduled Tokyo Olympics, slated to open in July 2021 after being postponed for a year due to the coronavirus pandemic.
"Because of rescheduling of the Olympic 2020, AIBA Executive Committee will discuss with the host country possible dates to adjust," said Moustahsane.
"We believe that we will keep planned timeframe and conduct World Championships in 2021 after the Games if the pandemic situation is under control."