2nd LD Writethru: India's debt ridden businessman Vijay Mallya arrested in London

Vijay Mallya, an Indian business tycoon who fled the country after defaulting bank loans worth billions of U.S. dollars, was arrested in London, local media reports said Tuesday.

According to reports, Mallya was arrested by Scotland Yard and will be produced at a local court in London.

India has asked Britain to extradite Mallya who is facing charges of money laundering and ignoring arrest warrants from courts.

Last year a local court in India declared the indebted businessman as proclaimed offender for his financial crimes.

Mallya after fleeing from India was in London and was ignoring series of orders to return to India to face creditors and cooperate in investigations.

New Delhi has revoked Mallya's passport and formally sought his extradition from the British government last year. However, Britain then made it clear that it cannot deport Mallya as he had entered the country on a valid passport.

The flamboyant businessman was an independent lawmaker in the upper house of the Indian parliament and resigned following his escape from the country.

Mallya, former head of collapsed Kingfisher Airline and liquor baron, is wanted in India for over a billion dollars in unpaid loans.

Mallya made his fortune selling beer and subsequently invested in aviation and sporting arenas including Formula One racing and Indian Premier League cricket.

Reports said his debts were mainly incurred by the failure of his airline. Endit