He was arrested on Tuesday by the Metropolitan Police on behalf of the Indian authorities, over fraud accusations.
India has been seeking the extradition of Mr Mallya, who faces charges of financial irregularities at his defunct Kingfisher Airlines.
Mr Mallya is said to owe banks £600m but he denies wrongdoing.
He appeared at Westminster Magistrates' Court on Tuesday and a case management hearing was scheduled for 17 May.
A brief statement on Mr Mallya's Twitter account said: "Usual Indian media hype. Extradition hearing in court started today as expected."
The 61-year-old former Indian MP entered the UK on a valid passport in March 2016.