Indian Business Association (IBA), organisers of New Jersey’s India Day Parade, is most likely to initiate legal action against Bollywood actor Bipasha Basu, who had publicly charged IBA volunteers of “harassing” her in a car.

Officials said the IBA, which instituted an inquiry into the allegations, will sue Basu for an undisclosed amount for violating the contract and making such an allegation. Though officials were not willing to talk till the inquiry was over, sources said it could sue her for $5 million. The legal action is expected to be initiated in a New Jersey court.

IBA had constituted an inquiry, headed by former New Jersey Superior Court Judge Richard Plechner. IBA officials said the committee chairman has been trying to reach Basu by phone, email and letter for the past two weeks. “So far, there has been no response from her,” an official said, speaking on the condition of anonymity.