According to an IANS news report, cited by NDTV, this was disclosed by the Minister of State for Information and Broadcasting, Rajyavardhan Singh Rathore in the Rajya Sabha in a written response to a question by Samajwadi Party's Neeraj Shekhar.
"Yes sir, the government was aware," said Rathore, and clarified that the PMO had not granted Jio the permission to use the prime minister's photo.
Rathore also clarified that the Directorate of Advertising and Visual Publicity (DAVP), which is a unit of the ministry, "releases government advertisements only and does not release advertisements of any private body."
Rathore said that any misuse of the Prime Minster's photo is covered under the Emblems and Names (prevention of improper use) Act 1950, which is administered by the Ministry of Consumer Affairs, Food and Public Distribution.