Hunt had been in charge of scrutinizing a bid by Murdoch's News Corp for pay TV operator BSkyB.
"David Cameron is bending over backwards to defend Jeremy Hunt because he knows that it is his own judgment, in appointing a man he knew to be biased to oversee the BSkyB bid, that is in question," Labour lawmaker Michael Dugher said.
Warsi, Britain's first Muslim woman to hold a cabinet post, had travelled to Pakistan on official business with her husband's second cousin Abid Hussain, a fact Warsi said was known to British officials.
However, in a letter to Cameron made public on Monday she said she had not realized the need to disclose her and Hussain's common business interest in a small food company.
"I sincerely regret that I did not consider the significance of this relationship with Mr Hussain when the arrangements for the visit were being made," Warsi said in her letter.
"In retrospect, I accept that I should have made officials aware of the business relationship between Mr Hussain and myself, and for this I am sorry. I regret that this failure may have caused embarrassment to the government," she added.
Replying to Warsi, Cameron said "there are clearly lessons" for the future and he had asked that Allan examine the case.
(Reporting by Mohammed Abbas; Editing by Michael Roddy)
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