Proclaimed offender industrialist Vijay Mallya was arrested in London by Scotland Yard on India's request for his extradition.
He was, however, released on bail a few hours later on a bail bond worth 6,50,000 pound.
Recently Mallya created headlines after his Kingfisher Villa in Goa was sold to film production company Viiking Media & Entertainment, which is owned by actor-businessman Sachiin S Joshi after third attempt.
Last month, setting in motion the process of extradition of Mallya, the British government had certified India's request and sent it to a district judge for further action.
Scotland Yard on Tuesday arrested Vijay Mallya and produced him in a Wensminster court acting upon the CBI's extradition request.
The CBI and the Indian High Commission in London will present India's case in the United Kingdom court for extradition of the controversial as the government looks to break the myth that a law breaker is out of bound once he is out of country.More news: Heated Congressional Race In Georgia Heads To Runoff
Santosh Gangwar, India's junior finance minister said the government would do everything in its power to bring Mallya to justice.
Last week, a Delhi court put out an open-ended non-bailable warrant against the 61-year-old in a case of alleged violation of foreign exchange rules. Bail is then granted, as was done in Mallya's case on Tuesday, the same day.
It must be noted that in 1993 an extradition treaty was signed between India and the UK.
March 2: Mallya flees India, leaving behind Rs 8,191 of debts to 17 banks. Several cases under the Prevention of Money Laundering Act (PMLA) have also been filed by the Enforcement Directorate and the courts have already frozen several bank accounts of the former liquor tycoon. "These are questions that Prime Minister Narendra Modi and the BJP need to answer instead of hoodwinking the people of India", Surjewala said.
Kingfisher Airlines Chairman Vijay Mallya speaks to the media during a news conference in Mumbai November 15, 2011. He is facing legal proceedings for defaulting on loans of over Rs 9,000 crore and being tried for cheque bounce.