JOIN USIndia had handed over the list to Islamabad during the home secretary-level talks between the two countries in March.
Two men on the list were found to be in India - one out on bail in Thane and the other in a Mumbai jail.
In a letter addressed to the Foreign Office, the interior ministry said India should first probe if the people named in the list have been living in that country, as it turned out that two of them have been living there, the Online news agency reported quoting sources.
After reviewing the list, the ministry has sent it to the foreign ministry to return it to India, the report said.
It added that the list will be handed over to the Indian high commissioner in Pakistan within a few days.
The list includes runaway don Dawood Ibrahim, Lashkar-e-Taiba (LeT) chief Hafiz Saeed and the masterminds of November 2008 Mumbai attack and other terror strikes in India.
Earlier, Indian Home Minister P. Chidambaram admitted that there were multiple errors in the list.
He said there was no need to apologise to the men who were mistakenly named as fugitives.
The Indian government ruled out any possibility of withdrawing the list even as authorities were reviewing it.