Mallya fled from India in March2016 to Britain as he was being hunted by the banks for defaulting 9000crore rupees.
Mallya was arrested on April 18 after India sought his extradition.More news: Instagram's New Features Allows You To Poll Your Friends
Mallya was re-arrested Tuesday and charged at Westminster Court in central London.
"I have not eluded any court". CPS in a statement has confirmed the liquor baron has been arrested under Prevention of Money Laundering Act (PMA) in relation to ongoing proceedings.
The new case gives evidence of the destination of the allegedly fraudulently obtained funds, some of which they claim may have landed in the Formula One team - Force India.
The probe was initiated after it was alleged that Mallya used various firms for laundering money from India to the United Kingdom through a complex web of companies, Times of India reported.More news: Google Ends "First Click Free" Program
It was said that more charges were expected to be added against Mallya by the Westminster Magistrates' Court, where an extradition case is going on at India's request.
A visibly pleased Mallya said after the hearing that he was facing many "extraordinary charges" but asked journalists to wait for the court's ruling at the end of the extradition trial scheduled to begin on December 4. The extradition case will be taken up in December.
Mallya, last month, submitted his response to India's request in a large box which had four reports.
CBI had started preliminary enquiry into the Rs 800 crore bad loan given by IDBI Bank to Kingfisher Airlines ignoring company's negative credit ratings.More news: Alexis Sanchez assisted Alex Iwobi for Arsenal's second goal in brilliant fashion