Solicitor-General Ranjit Kumar told the Supreme Court that it was "neither stolen nor forcibly taken away."

He said the diamond had been "gifted" to the East India company by the former rulers of Punjab.

The Kohinoor, part of the British crown jewels for 150 years, is an emotional issue for many Indians who believe it was "stolen" by the British.

The case is being heard after an Indian NGO filed a petition that asked the court to direct the Indian government to bring back the diamond.

The Supreme Court bench responded to Mr Kumar, saying that they did not want to dismiss the petition as it could "stand in the way" of future attempts to bring back items that once belonged to India.

Mr Kumar, representing the Indian government, said he would consult with the foreign minister on the issue and frame a response within six weeks, the Times of India newspaper reported.

Tushar Gandhi, the great grandson of independence leader Mahatma Gandhi, said a few years ago that it should be returned as "atonement for the colonial past".

However, successive British prime ministers have refused to do so.

Most recently, David Cameron said that returning it would set an "unworkable precedent".

"If you say yes to one you suddenly find the British Museum would be empty," he told Indian media during a trip to the country in 2010.

The 105-carat diamond was last worn by the late Queen Mother and was displayed on top of her crown when her coffin lay in state after her death in 2002.

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