Punjab deputy chief minister Sukhbir Singh Badal and his 45-member delegation were left unprotected for a short while when their Pakistani police guards left their duty and went off to have dinner at a club here.
The incident occurred last night at the Royal Country Palm Club, where Pakistani businessmen had hosted a dinner for the Indian visitors.
Punjab Police chief Haji Habibur Rehman took serious note of the "security lapse" and ordered an inquiry into the incident, officials told PTI.
Superintendent of Police (Security) Shomail Akram,however, contended the incident was not a security lapse.
"The policemen performing duty with the Indian delegation were hungry and they had to eat at the function. They were present on the premises while having dinner and therefore there is no question of a security lapse," he argued.
The Punjab Police chief's office said the inquiry would establish whether there was a security lapse.
The Indian delegation on Wednesday visited Lahore Fort and Badshahi Mosque. They also went to the Food Street near the Mughal-era mosque.
Badal attended a Youth Festival along with Punjab chief minister Shahbaz Sharif.
Leaders of the Pakistan People's Party, which is in power at the centre, hosted a luncheon for the delegation.