Indian businessman Vijay Mallya granted bail

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March-April: ED issues several summons to Mallya to appear before it. Non-bailable warrant issued by designated courts (ED).

Earlier in February, the Indian government had handed over a formal request for the fugitive industrialist's extradition to the UK High Commission, saying it had a legitimate case against him in on charges of financial irregularities and loan default.

Banks will have to wait for some more time to settle its outstanding issues with Vijay Mallya but they expect Tuesday's development will put pressure on the liquor baron to cough up money he owes to them. He was arrested at about 3 pm IST.

A former Kingfisher employee expressed happiness following the arrest of Vijay Mallya. He is required to appear at Westminster Magistrates' Court on May 17. "It was a voluntary action".

India and Britain have a mixed record on extradition, say legal experts.

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Mallya, who has thrown lavish parties attended by fashion models and Bollywood stars - and was once hailed as India's Sir Richard Branson - co-owns the Sahara Force India Formula One team.

Last month, the Ministry of External Affairs (MEA) informed that extradition of the absconding liquor baron has been stratified by the Secretary of State of the U.K. Government and added that a warrant would soon be released against him.

In New Delhi, Minister of State for Finance Santosh Kumar Gangwar said, "We are now assessing the facts how we can bring him back into the country and start judicial proceedings against him". He also said the arrest signifies the strong resolve of law enforcement agencies and the government. It was alleged loans above a permissible limit had been sanctioned by the bank to Mallya.

India's Central Bureau of Investigation, the country's equivalent of the FBI, had charged the beleaguered tycoon with cheating and conspiracy for defaulting on a 9 billion-rupee loan, given in 2009.

The warrant in the United Kingdom was issued in relation to accusations of fraud surrounding his failed Kingfisher Airlines company, which is reported to owe banks over a billion dollars.