The silver trophy weighing 7-1/2 kilograms would be handed to the captain of the victorious squad on Jun 21 at Lord's.
Impressed by the Indian team's performance, Vengsarkar was hopeful that India would guard its title.
"Since this is a very good side, all the players are in good form and they are capable of giving their best performance, so they have the best chance to win again...because the World Cup which they won in South Africa...they (get) another chance to go out in England and win the World Cup, they have the potential and I am sure that they will win it," he said.
Vengsarkar also supported the view of Sports Minister Manohar Singh Gill demanding a ban on the SMS-based ball-to-ball prediction game.
"I agree with Mr Gill as to what he said. To some extent we should not stoop so low to make money, to market that game via SMS's because we must maintain the sanctity of cricket and it is very important for me," he added.
Twelve teams including all test playing nations will participate in the 17-day long T20 World Cup in England starting on Jun 5.