The name of the late MP, one of the most divisive politicians of the late 20th century, was provided to Scotland Yard after a clergyman came forward with claims from the 1980s relating to ritual satanic abuse.
Mr Powell, a maverick politician who achieved notoriety with his so-called Rivers of Blood speech decrying migration to Britain, is the latest senior Parliamentarian to be made the subject of police inquiries into an alleged Establishment sex rings.
The Metropolitan Police has several ongoing investigations relating to claims against suspected abusers, including the former Liberal MP Cyril Smith. Detectives are also investigating allegations against former Home Secretary Leon Brittan.
The Independent understands that the claims against Mr Powell were passed to police by the Right Reverend Paul Butler, the Bishop of Durham, more than a year ago, but that they have only now been made public.
The Rt Rev Butler, who is the lead on safeguarding for the Church of England, contacted police after details of the allegations against the late Conservative politician were passed to him by a fellow clergyman, Dominic Walker, the former Bishop of Monmouth.
It is understood that the Rt Rev Walker first heard the claims when he was counselling young adults as a curate in the 1980s and claims were made that an unknown number of MPs had been involved in satanic cult-type abuse.