Prosecutors said on Tuesday that they arrested the captain and a crew member of the boat in which as many as 900 people are feared to have drowned.
The apex court, on September 12, had allowed Latorre to travel to Italy for treatment after the Centre had said that "in principle" it has no objection to his plea.
Latorre was hospitalised earlier this week and Italian Defence Minister Roberta Pinotti had also flown back to check on his condition.
Doctors treating the marine said they were "pleased with how he responded to the first treatment," according to a statement from the Italian defence ministry.
Italian Prime Minister Matteo Renzi said on Sunday that a deal between Lucchini and JSW Steel, controlled by billionaire Sajjan Jindal, would be concluded in "a matter of days".<br />
Italian Premier Matteo Renzi today spoke to his Indian counterpart Narendra Modi and sought a "rapid and positive solution" in the case of the two Italian marines being held in India for allegedly shooting to death two Indian fishermen in 2012.
Obama described himself as "incredibly moved" by his nearly hour-long session with the popular pontiff.
Abandoned by an ambitious party rival, Italian Premier Enrico Letta announced Thursday he is resigning after losing essential support for his battered, 10-month-old coalition government.