The ostentatious businessman was arrested on a extradited warrant and will appear today at Westminster Magistrates' Court in London.
New Delhi: Liquor baron Vijay Mallya, who has been declared a proclaimed offender, was arrested by the Scotland Yard in London on Tuesday morning following India's extradition request.
A few hours later, the Westminster Magistrate's Court granted Vijay Mallya bail.
"Officers from the Metropolitan Police's Extradition Unit this morning arrested a man on an extraction warrant. Vijay Mallya was arrested on behalf of the Indian authorities in relation to accusations of fraud," Scotland Yard said soon after Mallya was held.
Mallya was arrested after showing up in a police station and subsequently appeared in the Westminster Magistrate's Court for the bail hearing later.
India had in February requested the UK for Mallya's extradition according to the rules of the Extradition Treaty between the two countries. Mallya is accused of defaulting on bank loans worth 9,000 crores and is facing charges of money laundering.
While handing over the extradition request, India had said it had a "legitimate" case against Mallya and maintained if an extradition request was honoured, it would show British "sensitivity towards our concerns".
The business magnate left India for the UK last year amid attempts by banks to recover the loans on which he has defaulted.
An Indian court in January had ordered Mallya’s lenders to start the process of recovering the loans.
Senior Indian officials described his arrest as the first step in the extradition case which would now begin a legal process in the UK to determine if Mallya could be extradited to India to face charges in courts here.
India cancelled Mallya’s passport, but his extradition was refused by the UK earlier because under the country’s laws, visitors could stay in the country even if their passports had expired.
But in March, the British government set in motion the process of extradition by certifying India's request and sending it to a district judge for further action.
Mallya, who launched Kingfisher Airlines which now owes Rs 9,000 crores to banks, has been charged with cheating and conspiracy by the Central Bureau of Investigation (CBI), which filed a 1000-page chargesheet against him. The chargesheet specially mentioned covered one specific case -- the large loan given to him by IDBI Bank.
In January this year, a CBI court issued a non-bailable warrant against Mallya in the Rs 720-crore IDBI Bank loan default case.