The move comes after Verma's family refused to accept the award with his daughter claiming that he had been initially nominated for Padma Vibushan, country's second highest civilian award.
Official sources said Home Ministry will soon place before the selection panel the letter of Justice Verma's wife written to President Pranab Mukherjee explaining the reasons for refusing to accept the award.
The official members of the panel -- the Cabinet Secretary, Principal Secretary to the Prime Minister, Secretary to the President and Union Home Secretary -- will have a relook at the decision to confer Padma Bhushan to Justice Verma and see whether he could be bestowed Padma Vibhushan, the sources said.
The remaining awardees would be honoured by the President at another special function to be held on April 26.
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The decision on the former Chief Justice of India would be taken before the next function, sources said.
Immediately after Justice Verma's name was announced as one of the Padma Bhushan awardees, in a letter to the President, Verma's wife had said, "The greatest honour to him remains how he is held in the hearts and minds of his fellow countrymen: as a true friend not just to women or the youth, but to those most in need of one...."
Justice Verma's daughter Shubra had said in early January that some officials from the Home Ministry had visited Verma's hometown Satna in Madhya Pradesh and enquired about him.
"Some officials from the Home Ministry visited my father's hometown in Satna in Madhya Pradesh early this month (January) and had enquired about him.
"When I sought to know the reason for the enquiry, he said father's name has been nominated for Padma Vibhushan. Even someone from the Home Ministry visited our house here and had said the same thing," Shubra had said.