"The MPS has received correspondence relating to recent media reports concerning the awarding of peerages. At this time, we are considering the contents of the correspondence", said a spokesperson for Scotland Yard after receiving a letter from the Scottish National Party.
"The truth is the entire political establishment knows this happens and they do nothing about it…the most telling line is, once you pay your £3 million, you get your peerage", a government insider told The Sunday Times and openDemocracy, who conducted an investigation into the matter.
The individuals include nine Conservative Party treasurers, who are responsible for fundraising efforts. Each of them has donated at least £3 million to the party, the investigation shows. Peerages are awarded for life.
"It is corruption plain and simple - and it absolutely stinks", said SNP MP Peter Wishart, commenting on the media reports.
Wishart's letter to Scotland Yard Chief Dame Cressida Dick asked the force to probe the allegations.
The government of Boris Johnson has since categorically denied the accusations that there was a link between donations and how peerages were given.
"There is absolutely no question that we haven't followed all of the rules in relation to that and nobody is suggesting that we have done anything wrong", said Deputy Prime Minister Dominic Raab, adding that the letter to Scotland Yard was an attempt by the SNP "to rake muck".
The ongoing accusations come at a difficult time for the incumbent government, which has faced a huge public outcry over its handling of the Owen Paterson scandal. The Conservative Party has come under huge criticism since it attempted to reform a parliament standards system that found Mr Paterson guilty of violating lobbying rules.
Last week, a report by Parliamentary Commissioner for Standards Kathryn Stone, found that Mr Paterson lobbied the government on behalf of two companies, which paid him thousands of pounds. The report, approved by a group of cross-party MPs, recommended a 30-day suspension.
Instead of voting for the lawmaker's suspension, the government decided to launch an overhaul of the standards system, but following a massive outcry from the public and lawmakers made an about-face. Authorities later issued an apology, calling the decision to supersede the vote on Owen Paterson's suspension a "mistake".
Environment Secretary George Eustice said the government was trying to give politicians under investigation the right to appeal themselves rather than protecting a fellow party member.
Sir Keir Starmer, leader of the opposition Labour Party, dismissed the explanation outright, calling Boris Johnson's government "corrupt".
"The prime minister is trashing the reputation of our democracy and our country. It is a pattern of behaviour from a prime minister who doesn't know to uphold standards in public life", he said.
"What we do need to do is look also at the process. We are going to make every effort to get it right and we are going to hold MPs to account", he said.