They said the Prime Minister's Office is also "monitoring" the issue after charges of alleged corruption involving a senior Army officer looking after promotions, transfers and postings within the force surfaced.
Though the Ministry has not instituted a formal inquiry into the matter so far, Defence Minister Manohar Parrikar is "looking into" it.
Sources indicated that future course of action in the case will only be decided once Army chief Gen Dalbir Singh Suhag returns next week from his visit to Russia.
The sources said Parrikar is "concerned" about the allegations against the officer who is retiring by the month-end but "there has to be something substantial to move ahead".
Replying to a tweet to him regarding news that the officer has been sent on leave till his retirement due to corruption, Singh had tweeted, "shame is too small to describe this. RM must come down hard to cleanse the system."
Army has officially termed allegations as "false and malicious".
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