"This isn't anything to do with regional co-operation," Ms Hanson Young said.
"What we have got here is the very dangerous precedent of allowing another country in to interrogate, to interview refugees from the very places that they have come from."
A group of 157 asylum seekers are being transferred to Curtin detention centre in Western Australia after weeks of being detained on board a customs vessel at sea since their boat was intercepted 27km from Christmas Island on July 7.
A deal with Australia has resulted in India agreeing to take back its citizens and will consider taking Sri Lankan nationals who are Indian residents.
Senator Hanson-Young said she plans to travel to Curtin detention centre over the next few days to see how the asylum seekers are faring.
"There is no legal basis for allowing the Indian consulate to enter the detention centre and interrogate those involved. Where do we draw the line here? These people are now in Australia's care clearly. They're on Austarlian soil.
"What's next? Will we be allowing the Sri Lankan government to come in and interview the Tamils? Would we go so far as to allow ISIS to interrogate those who fled Iraq?"
"...My big concern overall for this group of people is that the government is trying to find way to send them back to danger," she said.
Prime Minister Tony Abbott insists the handling of 157 asylum seekers detained for weeks at sea is not illegal, as the government is accused of folding before aHigh Court ruling.\
"What we do is always in accordance with our international obligation, it's always in accordance with our legal obligations, it's always in accordance with safety at sea," he said on Saturday.
Tony Abbott says while the government is sticking to its commitment to stop the boats, its methods are as humane as possible.
Asylum Seeker Resource Centre chief executive Kon Karapanagiotidis says the agreement with India has raised serious concerns.
"It's deeply problematic and I don't think it's fair. I question whether it is legal, and we have a legal process to deal with those questions," he told the ABC.
Labor's Jim Chalmers said Mr Morrison was focused on a narrow and grubby political strategy.
"These people should have been taken to Christmas Island much earlier," he told Sky News.
But Mr Abbott said he was determined to make an example of this boatload of asylum seekers.
"This is the first boat which has got as close to success, if you like, as one has in many a long month.
"We are determined to respond to this one in ways which underline our absolute implacable opposition to people smuggling."
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