Concerned over the phenomenon of "paid news" in the electronic and print media, the government on Friday said it is considering enhancing powers of the Press Council of India.

"...There exists strong circumstantial evidence of the malpractices," Information and Broadcasting Minister Ambika Soni said in the Rajya Sabha in response to a Calling Attention Notice on the issue.

She said the phenomenon of "paid news" is a serious matter as it influences functioning of a free press.

Soni said the proposal to give more teeth to the Press Council of India (PCI) is "under the consideration" of the government.

The media watchdog has been writing to successive governments to enhance its powers but "for one or the other reason", it was not done, the minister said. She said the PCI had formed a sub-committee on the issue. The committee has held several interactions including with the Election Commission and would give its report by the month-end.

Concerned over the trend, Leader of Opposition Arun Jaitley said there should be a regulator in the field which should impose "deterrent" penalties on the malpractice. He said if political parties are found to be indulging in the same, there should be action against them as well.

He asked the government whether it would take steps against the problem or leave the menace of unlawful trade and business to the Press Council of India which he called as "toothless wonder".