The family of CGI Shashank Vikram was attacked by robbers at their official residence. Vikram's five-year-old son, a domestic staff and a visiting teacher was held hostage briefly.
Government of India has raised the issue with authorities in South Africa.
Ministry of External Affairs said in a statement that investigations are going on.
"We have taken up the matter with the relevant authorities, and investigations are currently ongoing. We expect that the intruders will be arrested soon," ministry of external affairs spokesperson Raveesh Kumar told news agency PTI.
He said that ensuring safety and security of Indian diplomats/officials posted abroad top priority.
The incident happened on Thursday when eight armed men robbed Vikram's house, according to media reports. The Independent Online reported that the Vikram's residence, India House was breached on despite protection offered by the South African Police Services' VIP Unit, a private guard company and armed response provider.
"Vikram's wife, Megha Singh, and the couple's two young children were home at the time and were subjected to a terrifying 10-minute ordeal during which their five-year-old son was held hostage as the robbers demanded money and gold," Independent Online said.
"The little boy, who had been studying in the reception room with a tutor, was carried at gunpoint and ordered to deactivate the alarm that had been set off by the family's domestic helper, who was beaten for her courageous act."
The portal quoted Vikram saying that the incident was a "very rude shock" that should not have happened.
“Durban is home to us and we are very comfortable here. We never expected that such a thing would transpire. That is why I think it has come as a very rude shock. This is the first time India House has been intruded like this,” Vikram told IOL.
India's External Affairs minister Sushma Swaraj has spoken to family.