India's top court on Thursday put on hold a new government-appointed unit created to fact-check online content about the government, a month before Prime Minister Narendra Modi seeks a rare third term in general elections.

The unit was created as part of changes made to the country's IT rules in April last year.

The changes dictated that social media platforms make "reasonable efforts" to not "publish, share or host" information about the government that the unit deemed to be "fake, false or misleading".

The unit was formally constituted on Wednesday even before the Bombay High Court could give its final opinion on challenges to the IT rules changes, causing its opponents to appeal to the Supreme Court.

The opponents argued that with elections around the corner, people have a right to know about the federal government and the fact-checking unit could pose a barrier.

"There is more than a prima facie case" to pause the operation of the unit until the final orders of the Bombay High Court, the Supreme Court ruled in response.

"The challenge ... will involve serious constitutional questions. The impact ... to the fundamental right of freedom of speech and expression would call for an analysis by the high court," Chief Justice of India D.Y. Chandrachud said.

The government, while announcing the formal constitution of the fact-checking unit on Wednesday, said its purpose would be "to counter misinformation on government policies, initiatives and schemes".

The changes to the IT rules had drawn criticism from civil society, opposition groups and media groups, who said they were a threat to freedom of speech. But the government dismissed the concerns saying fact-checking would be done in a credible manner.

Challenging the changes in the Bombay High Court, comedian Kunal Kamra had said they constituted "unreasonable restrictions" to freedom of speech and expression, and to his "fundamental right to practice trade or profession" since he relies on social media platforms to share his content. (Reporting by Arpan Chaturvedi and Sakshi Dayal; Editing by YP Rajesh)