Murder-for-hire allegations against Indian national Nikhil Gupta whom the United States claims to have conspired with another Indian to kill Khalistani terrorist Gurpatwant Singh Pannun has led New Delhi to consider "institutional reforms... necessary to deal with" such allegations, Kurt M Campbell, the Deputy Secretary of State in the US government, told media reports on Wednesday.

Gupta, 53, was arrested by Czechia officials in June last year and extradited to the US this month.

The same happened following a request by the United States, which accused him of plotting with an Indian government official to hire a 'hitman' who was later revealed as an undercover American federal agent.

The US has claimed they have material that shows the staffer asked Gupta to plan the killing.

In return, the staffer said a criminal case against Nikhil Gupta in Gujarat would be dropped.

Gupta was produced before a New York federal court and entered a 'not guilty' plea.

He has not, so far, requested consular access that is the right of any Indian in his position.

"We are looking into the matter... to see what can be done (and) are in touch with his family," India said.

India has designated Pannun a terrorist but dissociated itself from the plot.

In November last year, the External Affairs Ministry acknowledged the charges are a "matter of concern", and stressed the government had launched a high-level probe into the matter. "We have said this (the act of ordering Pannun's murder) is contrary to government policy," the ministry said.