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Cape Town - Force India co-owner Vijay Mallya was arrested by Scotland Yard on Tuesday morning on an extradition warrant.
Authorities in India want the business tycoon, claiming he owes an estimated £600 million following the collapse of Kingfisher Airlines.
Despite multiple injunctions, Mallya has failed to appear before the Indian courts.
Last April his diplomatic passport was revoked when a warrant for his arrest was issued.
As such, earlier this year, India sent a formal request for Mallya to be extradited to India.
The Metropolitan Police said: "Officers from the Metropolitan Police's Extradition Unit have this morning, Tuesday, April 18 arrested a man on an extraction warrant.
"Vijay Mallya, 61, was arrested on behalf of the Indian authorities in relation to accusations of fraud."
The statement added that he was taken into custody after attending a central London police station and will appear at Westminster Magistrates' Court.
