The move came after Press Council of India chief Justice (retd) Markandey Katju petitioned President Pranab Mukherjee seeking relief for the actor and two others, including a 70 year-old women, on humanitarian grounds.
Sources told PTI that the Home Ministry sought the opinion of the Maharashtra government after the President forwarded applications of Katju and a few others seeking reduction of their sentences.
"We have asked the state government to provide its opinion, the jailor's comment on the actor's conduct and a few others issues," sources said.
We have asked the state government to provide its opinion
Dutt, who was lodged in Pune's Yerawada Central Jail to serve his remaining sentence in connection with the 1993 Mumbai serial blasts case, is currently at home on furlough.
Good conduct is one of the criteria for granting furlough, which is sanctioned from prisoner's accumulated leave.
Dutt, 53, is serving the remaining 42-month jail term for possessing illegal firearms, part of the cache of weapons which were supposed to be used during the 1993 bombings.
He was shifted to Yerawada jail from Mumbai's Arthur Road Jail on May 22 in a hush-hush pre-dawn operation.
In its March 21 verdict, the Supreme Court had reduced Dutt's jail term from six years to five. The actor had already served 18 months behind bars.
On May 10, the Supreme Court had dismissed Dutt's plea seeking review of its judgement on his conviction and the five-year jail sentence.
After getting recommendation from the state government, the matter may be put before the President, if required, sources said.