A Metropolitan Police spokesperson said Vijay Mallya has been arrested on an extradition warrant.
The 61-year-old liquor businessman, wanted in India for defaulting on loans, appeared before the Westminster’s Magistrates’ Court in London for his bail hearing where the court has granted bail to him.
Mallya, whose now-defunct Kingfisher Airlines owes more than Rs 9,000 crore to various banks, had fled India on March 2, 2016.
In January, an Indian court ordered a consortium of lenders to start the process of recovering the loans.
India had given a formal extradition request for Mallya as per the Extradition Treaty between India and the UK through a note verbale on February 8.
Earlier in January this year, a CBI court had issued a non-bailable warrant against Mallya in the Rs 720-crore IDBI Bank loan default case.