Chhota Rajan is likely to be deported to India, the police in Bali have said.
Chhota Rajan, the underworld don wanted for over two decades for a series of murders, extortion and drug trafficking in India, has been arrested in Indonesia.
The 55-year-old gangster, born Rajendra Sadashiv Nikalje, was arrested on the CBI's request, Indian officials confirmed after hours of confusion.
Reports on the arrest of one Mohan Kumar had raised doubts about whether the man caught in Bali yesterday was really Chhota Rajan, the powerful aide-turned-rival of terrorist Dawood Ibrahim.
The CBI said this evening that Mohan Kumar was an alias used by Chhota Rajan.
"The Bali police has arrested an Indian national, Mohan Kumar, alias Rajendra Sadashiv Nikalje alias Chhota Rajan. The CBI has been pursuing the matter with Australian authorities. This is a good and close cooperation between India, Australia and Indonesia," the agency said, adding, "We thank Indonesia and Australia for their prompt action at our request."
Home Minister Rajnath Singh said after it is fully established that the arrested man is Chhota Rajan, "we will take appropriate action."
He is likely to be deported to India, the police in Bali have said.
Chhota Rajan (Right) after being arrested in Indonesia.
Chhota Rajan was arrested as he arrived from Sydney. The Australian police had reportedly alerted the Bali Police on a passenger wanted by Interpol and accused of several murders.
Bali police spokesperson Heri Wiyanto has been quoted in reports as saying that the police in Canberra shared details on Sunday on the red notice for a murderer.
Rajan had been living in Australia under another identity and had reportedly been in discussions with Indian authorities.
Born in Mumbai, Rajan is wanted for multiple charges including murder and possession and use of illegal firearms.
Interpol had flagged Rajan as a wanted man way back in 1995.
He began his career in crime by black marketing movie tickets in the 1970s.
In 2000, there was an attempt on Chhota Rajan's life when Dawood's men tracked him down to a hotel in Bangkok. Rajan escaped through the hotel's roof.
Rajan's arrest comes at a time the government has stepped up diplomatic pressure on Pakistan to hand over Dawood Ibrahim, accused of masterminding the 1993 Mumbai blasts, in which more than 250 people were killed.