To bring Vijay Mallya to India to face charges, the Enforcement Directorate has asked Interpol to issue a red corner notice, which is similar to an international warrant.
This comes after Britain told India that it can't deport the liquor baron under its laws but can help with his extradition.
Vijay Mallya, whose passport was cancelled last month, is wanted in India for over a billion dollars in unpaid loans. New Delhi had formally requested London that he be deported, which is faster than the process of extradition under a treaty between two governments.
Mr Mallya, 60, is also being investigated for money-laundering. He flew to London on March 2 as banks attempted to recover around 9,000 crores loaned to his collapsed Kingfisher Airlines.
The Enforcement Directorate of India is looking at whether Mr Mallya used part of a loan to purchase properties abroad, an allegation he has denied. A Mumbai court has issued an arrest warrant for him linked to this charge.
The flamboyant businessman has ignored a series of orders to return to India to face investigations and his creditors.
Last week, he pre-empted his expulsion from the Rajya Sabha or Upper House of Parliament by sending a resignation letter from London, saying he didn't want his name and reputation to be "further dragged in the mud", Indian media reports.