They were part of a delegation of over 800 from Kargil in Ladakh, who have been stuck in Iran since February.
Most of them are stranded in hotels and other accommodation in Qom, one of the areas in Iran worst affected by the coronavirus outbreak.
India had sent a team of doctors from Pune to conduct tests on Indians in Iran. The list of 254 infected, is believed to be the outcome of that excercise.
Haji Mustafa, a lawyer from Kargil, said his relatives are among the Indians infected in Iran. He alleged that official neglect had exacerbated the crisis.
He told NDTV that test results for the Indians in Iran were released in batches and not enough was done to isolate those who tested positive.
This, Mr Mustafa said, led to a larger pool in the delegation getting exposed to the virus.
The family is still waiting to hear from authorities about the Indians being evacuated from Iran.
Over 200 Indians have been flown back from Iran in batches since last week.
Most of them were students from Jammu and Kashmir studying in different universities and colleges in Iran.
Over 700 people have died from the disease in Iran and nearly 14,000 cases have been detected.
External Affairs Minister S Jaishankar said a total of 234 Indians have been evacuated from Iran.
Asked about the 250 Indians testing positive for the disease, senior foreign ministry official Dammu Ravi said: “All Indians in Iran are safe and in good care. About the list of 250 Indians going around in social media, I cannot confirm it. Of course in a situation like that, you will find some positive cases given the extensive spread of virus in Iran. Rest assured that every care is being taken by mission in cooperating and coordinating with the government of Iran for safety of Indians there,” he added.