"Zakir Nayek's speech is a matter of concern for us. Our agencies are working on this. But as a minister, I will not comment what action will be taken," Union Minister of State for Home Affairs Kiren Rijiju told reporters in Delhi.
The new Information and Broadcasting Minister M Venkaiah Naidu when asked about Naik's speeches said, "We have time to study all these aspects".
"Terror can be defeated only through close coordination and by fighting together (against it)," he said.
Bangladeshi newspaper 'Daily Star' had reported that militant Rohan Imtiaz, son of an Awami League leader, ran a propaganda on Facebook last year quoting Nayek.
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Nayek, in his lecture aired on Peace TV, an international Islamic channel, had reportedly "urged all Muslims to be terrorists".
Nayek, a popular but controversial Islamic orator and founder of Mumbai-based Islamic Research Foundation, is banned in the UK and Canada for his 'hate speech' aimed at other religions. He is among 16 banned Islamic scholars in Malaysia.
Sena MP Arvind Sawant said he had written to the Union Home Minister, demanding a ban on Naik and Islamic Research Foundation, in the country's interest.
"People whose language propagates violence against nation's unity should be banned," Sawant said in the letter.
"Islam teaches love and peace. But everyday is a day of high alert now. I appeal to the Home Minister that action needs to be taken," he said.
"How do young children in our country join the ISIS? So maybe we are failing somewhere....We should know the seriousness of this situation. Radicalised minds can now take any step. In the name of Islam, they are slaughtering people who cannot recite verses," Sawant added.
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Nayek on his part asserted that his speech on Islam and terror has been taken out of context and claimed that he had only said muslims should terrorise anti-social elements.
Nayek while stating this to TV channels said no muslim should terrorise any innocent person.
The preacher further claimed that he had spoken to Bangladesh Prime Minister's adviser and that he was told that authorities there did not agree that his speeches had radicalised the attackers.
Bangladesh Information Minister Hasan-Ul-Haq, however, said no clean chit has been given yet to the Indian preacher.
"That doesn't mean I have inspired them. I have inspired them to come closer to Islam. But to say that I have inspired them to do radical act of killing innocent people is totally false," he added.