An Indian man detained in Bali after a flight from Sydney has been named by the Australian Federal Police as Rajendra Sadashiv Nikalje.
Nikalje, 55, is wanted in India on charges of murder, attempted murder, illegal weapons offences, conspiracy, and organised crime.
Police at Ngurah Rai Airport, in Denpasar, detained Nikalje on Sunday on an Interpol red notice.
The AFP says it confirmed in September that Nikalje was living in Australia under another identity, and alerted Indian authorities and Interpol.
"Australian authorities were in discussions with Indian authorities in relation to Mr Nikalje, however, it would not be appropriate to provide further details," the AFP said.
When he departed for Bali on Sunday, Interpol Canberra alerted Indonesian authorities, who apprehended him as he got off a Garuda flight after 1pm local time.
In July, The Times of India reported Nikalje - better known as Chotta Rajan - was in Australia, in hiding from his underworld rival Chhota Shakeel, an aide of one of the world's most wanted men, Dawood Ibrahim.
Nikalje too was reportedly an aide of Ibrahim until the two parted ways over the latter's role in the 1993 Bombay bombings.
Ibrahim, who is said to have close links to al-Qaeda, is wanted for co-ordinating the blasts, which killed more than 350 people.