Metropolitan Police officers detained the 61-year-old at the request of Indian authorities over allegations of fraud in his native country related to the collapse of Kingfisher Airlines, with unpaid debt believed to be in the region of £1 billion.
At the extradition hearing the judge must decide a number of issues: whether the documentation sent to the court by the Secretary of State complies with the Act; whether the individual arrested is the person named on the warrant; whether the offence detailed in the request is an extradition offence et al.
Mallya, who co-owns the Force India F1 team, appeared before Westminster magistrates and posted bail of £650,000 to return for an extradition hearing on May 17.
The UK's Crown Prosecution Service (CPS) will now argue the case on behalf of the Indian authorities.
Mallya, who has been pursued by various banks in courts for the recovery of bank loans worth ₹9000 crores for the now-defunct Kingfisher Airlines fled to Britain in April a year ago.
The minister further said Mallya's extradition is part of the "judicial process" in the UK.
However, unlike Mallya, he had submitted to the extradition order without legal challenge. He is the owner of a Formula One team.
Mallya, who was given conditional bail, denies claims that he fled to the United Kingdom in March 2016 to avoid arrest, saying that he regularly does business here.
While handing over the request, India had asserted that it has a "legitimate" case against Mallya and maintained that if an extradition request is honoured, it would show British "sensitivity towards our concerns".