Increased oil and gas exploration activity has led to a detailed investigation of the continental shelf and adjacent slope regions of Mahanadi, Krishna–Godavari (KG) and Cauvery basins, which are promising petroliferous basins along the eastern continental margin of India. In this paper, we analyze the high resolution sparker, subbottom profiler and multibeam data in KG offshore basin to understand the shallow structures and shallow deposits for gas hydrate exploration. We identified and mapped prominent positive topographic features in the bathymetry data. These mounds show fluid/gas migration features such as acoustic voids, acoustic chimneys, and acoustic turbid layers. It is interesting to note that drilling/coring onboard JOIDES in the vicinity of the mounds show the presence of thick accumulation of subsurface gas hydrate. Further, geological and geochemical study of long sediment cores collected onboard Marion Dufresne in the vicinity of the mounds and sedimentary ridges shows the imprints of paleo-expulsion of methane and sulfidic fluid from the seafloor. To understand the origin of the mounds and their relationship with gas hydrate/cold seep formation, we analyzed the multi-channel seismic reflection (MCS) data close to the mounds. The MCS data show that the subsurface layers beneath the mounds are folded. Below the folded overburden, we observe zones of no coherent reflections probably originating from Miocene sequence. Since the study area is located in shale tectonics regime where Miocene sequences are known to be overpressured, we interpret the zones of no coherent reflections as Miocene shale diapirs. The upward movement of shale diapirs has folded the overburden layer and resulted in the formation of numerous faults/fractures. These faults act as permeable pathways for fluid/gas movement facilitating the formation of gas hydrate and cold seeps close to shale diapiric mound.