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Former Blackburn manager Sam Allardyce has instructed lawyers to initiate proceedings against his Ewood Park successor Steve Kean, Press Association Sport understands.
The action comes in relation to unguarded comments made by Kean about Allardyce to supporters while secretly being filmed.
The four-minute video, apparently filmed during Rovers' pre-season trip to Hong Kong last summer, was released on the internet overnight.
Glen Mullan, Chairman of the BRFC Action Committee speaks to ITV Granada.
Many fans pinpoint the club's takeover by Venky's 18 months ago as the start of their demise.
Venky's sacked Allardyce soon into their stewardship and appointed Kean, who was the subject of demonstrations throughout this season's struggles.
Last week a letter from Rovers deputy chief executive Paul Hunt to Venky's calling for Kean's removal surfaced in the media.
Hunt has since left the club in what was described by Venky's as a cost-cutting measure following relegation.
Blackburn declined to comment.
The fans' group campaigning for the removal of Blackburn manager Steve Kean have been granted meetings with Government and the Premier League to air their concerns.
The BRFC Action Group have long called for the removal of Kean and claim owners Venky's, are not fit and proper persons to run the club.
Their campaign has been stepped up since the club were relegated from the Premier League amid scenes of unrest at Ewood Park last week.Blackburn MP Jack Straw has facilitated a meeting of the fans with sports minister Hugh Robertson and the Premier League have agreed in principle to meet them.
Latest ITV News reports
Steve Kean is at the centre of an internet storm after a video emerged which appeared to show him making remarks about Sam Allardyce.