Mirchi, 63, the right-hand man of India's topmost terrorist, was also facing drug smuggling charges in India.
He had been living in a large six-bedroom home in an exclusive part of Hornchurch, a town in Essex, north-east of London.
Ranked among the world's top 50 drug barons, Muhammed Iqbal Memon or Iqbal Mirchi had been issued an Interpol Red Corner Notice in 1994 on Central Bureau of Investigation's request.
In April 1995, officers from Scotland Yard had raided Mirchi's home and arrested him on drugs and terrorism charges in connection with the blasts in Mumbai.
Scotland Yard's investigation of Mirchi, which ended in 1999, found no evidence of criminal activity and in 2001 the UK Home Office granted him indefinite leave to remain in the UK.
India's most-wanted criminal Dawood Ibrahim is on FBI's list of top terrorists in the world.
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