Sources in the defence and security establishment said the suspects were first detained in late September, and were arrested subsequently.
It is learnt that the project concerned involved the refit of the Kilo class submarines, a mainstay of the Indian Navy.
Sources said there are other projects also that the accused are suspected to have leaked information about, and the probe is on.
The Navy in a statement Tuesday said the investigation related to “alleged information leak of administrative and commercial nature being with some unauthorised personnel has come to light and is being investigated by the appropriate government agency”.
It added that the probe by the agency with complete support of the Indian Navy is in progress and an internal inquiry has been instituted by the force.