Businessman Vijay Mallya was arrested on Tuesday morning in London, sources said. He is due to appear in the Westminister Magistrates court.
The British authorities recently started the legal process to extradite Mr.Mallya to India. However, it is not certain if the process would culminate in his return to India to face charges, as the India-U.K. Extradition Treaty allows a wanted person to seek several guarantees before being extradited.
In January last, a CBI court issued a non-bailable warrant against Mr. Mallya in the Rs. 720 crore IDBI Bank loan default case. Mr. Mallya, whose now defunct Kingfisher Airlines owes more than Rs 9,000 crore to various banks, fled India on March 2, 2016.
Mr. Mallya, declared a wilful defaulter by banks, including the State Bank of India, had unsuccessfully offered the consortium of lenders an initial settlement of ₹4,000 crore, out of Kingfisher Airlines’ total dues of about ₹9,000 crore.