According to official sources, in its notice to the company, the ministry has said that there are various options available for the messaging platform under Indian law.
The government has told WhatsApp to respond to its concerns by May 25.
Noting that many Indian users depend on WhatsApp for communicating on a daily basis, the ministry said that it is irresponsible for WhatsApp to leverage position in Indian market to impose unfair terms and conditions.
The ministry has also strongly taken up the issue of WhatsApp's 'discriminatory treatment' to Indian users in comparison to the users in Europe.
The matter is sub-judice as the ministry approached the Delhi High Court over the same.