The Centre on Monday informed the Supreme Court that the Italian marines, accused of killing two fishermen, would not be prosecuted under the anti-piracy law SUA (Suppression of Unlawful Acts).
Italy demanded closure of case saying without SUA charges NIA has no jurisdiction to probe the case.
The SC said it will examine if NIA or some other agency will handle the probe.
The top court referred Italy's plea for quashing of the case to a larger 3-judge bench.
Earlier, the law ministry had concurred with the external affairs ministry on non-applicability of the anti-piracy law which was being strongly contested by the Italian government.
The law ministry was of the view that the Suppression of Unlawful Acts (SUA) against the safety of Maritime Navigation should not apply in the case against the two Italian marines who have been accused of killing two Indian fishermen two years ago, sources said.
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