He has been granted time of one week to reply failing which his passport will be impounded and the process of extradition would begin.
The Ministry of External Affairs will begin the process of extraditing Mallya from London where he is believed to be at the moment.
Officials tell Oneindia that the process of extradition can begin only after giving him an opportunity. He will need to give us his reply within a week. If there is no response within a week, then action will be taken and his passport impounded or revoked.
Read More: Vijay Mallya's diplomatic passport suspended
After this a formal request for his extradition can be made the officer also informed. In addition to this the government would also wait for the verdict of the Mumbai court which is hearing a plea by the Enforcement Directorate which has sought issuance of a non-bailable warrant against Mallya.
On Wednesday the Enforcement Directorate had asked the Regional Passport Office (RPO) in Delhi to revoke Mallya's passport after he failed to appear before the probe agency.
It is alleged that Mallya had misappropriated Rs 900 crore loan from IDBI bank for the now defunct Kingfisher Airlines. The ED had also accused him of conspiring with banks officials to get the loan sanctioned.
The ED had issued three summons to him. However all three times he sought time stating that he was in talks with the banks to reach a final settlement.
Read More: Vijay Mallya fails to appear before ED today
On Friday the diplomatic passport of Vijay Mallya had been suspended. It is alleged that he had flown out of India on a diplomatic passport.
The passport issuing authority in the ministry for external affairs suspended Mallya's passport with immediate effect for a period of four weeks under Section 10 A of the Passports Act of 1967.
Mallya has been asked to respond within one week as to why his passport should not be impounded or revoked under Section 10 (3)(c) of the Passports Act of 1967.
If he fails to respond within the stipulated time, it will be assumed that he has no response to offer and the ministry for external affairs will go ahead with the revocation.