The parole for Dutt, apparently approved by the Pune divisional commissioner, has evoked strong reactions from various quarters.
State Home Minister R R Patil has sought a report from the concerned departments to ascertain whether Dutt was eligible for a month's parole on grounds that his wife Maanyata was ill.
An official said police may also try to verify the nature of Maanyata's illness before a final decision on the parole is taken.
Political sources said the government was being extra careful in view of the winter session of the Maharashtra legislature starting here on Monday where the issue could be raised by the Opposition.
A group of Republican Party of India (RPI) activists on Saturday demonstrated outside the Yerawada Central Jail, protesting the likely release of the actor on parole.
Waving black flags and banners, RPI activists led by district chief Sandeep Sasane shouted slogans demanding that Dutt should not be granted parole and treated at par with other prisoners.
Dutt, 54, had recently applied for a month's parole saying he wanted to take care of his sick wife.
However, Maanyata reportedly attended a film premiere on Thursday night and her pictures were splashed in various online media. She was seen sporting jeans and T-shirt.
This would be the third time Dutt will be granted parole in the past three months.
Dutt was granted the first parole for a fortnight due to medical reasons on October 1, which was extended by another 15 days and he returned to the jail on October 30.
The actor is presently serving the remaining 42 months of his five-year sentence for his involvement in the March 1993 Mumbai serial blasts.
Having served 18 months in jail as an undertrial, Dutt started his stint in the jail on May 16. In prison, he has been assigned the task of making paper bags which are sold outside through some NGOs.
Though Dutt spent Diwali in jail along with other inmates, he is likely to enjoy Christmas and New Year with his family.
Dutt has acted in movies like "Munnabhai M B B S", "Lage Raho Munna Bhai" and "Agneepath" in the past few years.