A Scorpio SUV with the explosive substance was found near Mukesh Ambani's home.
An abandoned vehicle with explosive material was found near business tycoon Mukesh Ambani's house in Mumbai on Thursday, Maharashtra Home Minister Anil Deshmukh said, in a bomb scare just metres away from where India's richest man lives under high security.
"A Scorpio van with some gelatin was found at some distance from Mukesh Ambani's home in Mumbai. The Mumbai Crime Branch is investigating it. The truth will come out," Mr Deshmukh said.
According to police sources, a suspicious vehicle was reported on Carmichael Road on Thursday evening. The police was alerted and a Bomb Detection and Disposal Squad or BDDS team and other police teams reached the spot immediately.
"They examined the vehicle and found 20 explosive gelatin sticks inside. It is not an assembled explosive device. Further investigation is going on," police sources said. They added the car was parked in the area around 1 am last night, according to CCTV footage.
Police sources also said that a letter had been found inside the vehicle but did not disclose its contents. Intriguingly, they said, the vehicle's registration number matched one on Mr Ambani's security detail.
Security has been increased in the area, the SUV has been seized and senior officers of the Mumbai Police examined the spot.
Mr Ambani, the chairman of Reliance Industries, lives in a luxurious, 27-storey, 400,000 sq feet building called Antilia in south Mumbai's posh Cumballa Hill area. His family moved into the building in 2012.
Designed by Chicago-based firm Perkins and Will, it reportedly has three helipads, a 168-car garage, a ballroom, nine high-speed elevators, a 50-seat theatre, terrace gardens, swimming pool, spa, healthcentre, a temple, and a snow room.
The incident comes less than a month after a "very low-intensity" IED (improvised explosive device) blast near the Israeli embassy in the heart of central Delhi, sparked a scare in the high-security area.
The blast took place 1.4 kilometres from Vijay Chowk, where President Ram Nath Kovind, Prime Minister Narendra Modi and other senior members of the government had gathered for the Beating Retreat ceremony that follows the Republic Day parade.