Indian businessman Vijay Mallya arrested in London, granted bail

Mallya , who is accused of defaulting on loans worth thousands of crores, was arrested by the Metropolitan Police in London. The UK had refused to deport Mallya last year after India wanted him to be extradited following his silence on summons by the Indian federal investigating body CBI and Enforcement Directorate.

However, reacting on the development, Mallya tweeted: "Usual Indian media hype. Extradition hearing in Court started today as expected."

Mallya, who is facing charges of money laundering and several warrants in India, fled to the UK last year and later claimed he is facing a "witch hunt" in India.

Earlier, confirming his arrest, the Metropolitan Police said in a statement: "Officers from the Metropolitan Police's Extradition Unit have this morning, Tuesday 18 April arrested a man on an extradition warrant."

"Vijay Mallya, 61 (18/12/1955), was arrested on behalf of the Indian authorities in relation to accusations of fraud," it said.

The statement further said: "He was arrested after attending a central London police station, and will appear at Westminster Magistrates' Court later today, 18 April."

India had earlier asked the UK to extradite the liquor baron.

In a case of alleged violation of foreign exchange rules, a Delhi court had recently put out an open-ended non-bailable warrant against Mallaya.

Mallya's Kingfisher Airlines, which is now defunct, owes more than Rs 9,000 crore to various banks.