The government is likely to order a CBI inquiry into the alleged unauthorised operations and financial wrong doings by a top secret intelligence unit set up by then Army chief Gen VK Singh.
Sources said that the government has taken serious note of the report of a Board of Inquiry into the functioning of Technical Services Division (TSD) alleging misuse of position by Gen Singh and is likely to order a CBI probe into the matter soon.
Information and broadcasting minister Manish Tewari told reporters on Friday that the facts brought out in the report are "extremely sensitive" and if any person - retired or serving - is found involved in the matter, action will be taken.
"The contents of the report which have been mentioned in a newspaper are under active consideration of the government. If any malfeasance is found against any serving or retired officer, appropriate action will be initiated.
"...The government has also put in place measures to ensure that there is never ever a repeat of some of the things which have allegedly been mentioned in the report," Tewari said.
TSD allegedly illegally tapped phones of senior defence ministry officials. The Army report, which was submitted to the defence ministry recently, has recommended a probe into the functioning of the intelligence unit, sources said.
A newspaper quoting the report said Gen Singh had misused the secret service funds to destabilise the Omar Abdullah government in Jammu and Kashmir, to pay off an NGO to try change the line of succession in the Army top brass, to buy off-air interception equipment and to conduct "unauthorised" covert operations.
Replying to a question on possible action against the retired army chief and his team involved in this matter, Tewari said this is not a question of being individual-specific but it is more of a systemic and structural issue "wherein there are alleged actions which impinge upon the larger ambit of national security".