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Police in Indonesia say they have arrested an alleged Indian underworld don who has been on the run for 20 years.

Rajendra Sadashiv Nikalje, also known in India as Chhota Rajan or "Little Rajan", is accused of multiple murders.

Nikalje was detained when he flew into Bali airport from Sydney on Sunday.

Police were acting on a tip-off from the Australian police who say he was living there under a different name.

Nikalje, 55, is wanted in the western Indian city of Mumbai in connection with at least 17 cases of murder.

The chief of India's Central Bureau of Investigation (CBI), Anil Sinha, told the Press Trust of India news agency that the Bali police had arrested "Chhota Rajan at CBI's request made through Interpol".

Bali police spokesman Heri Wiyanto told ³ÉÈË¿ìÊÖ News that they detained Nikalje as soon as he arrived at the Bali airport.

Mr Wiyanto said the Bali police had received the tip-off about Nikalje and his status as red notice, from Interpol.

"The tip-off came directly from Canberra to Indonesia's police headquarters in Jakarta. The headquarters then instructed Bali police to arrest Nikalje," he said.

According to Mr Wiyanto, the Bali police only sent one officer to arrest Nikalje at the airport.

"He showed no resistance at all."

Nikalje has been placed in a cell with other inmates in the Bali police office.

Mr Wiyanto said the Bali police has contacted the Indian consulate and the deportation process is now being prepared.

"But we don't know when the deportation will be conducted," he said.

Interpol'sstates that Nikalje was born in Mumbai, and is wanted for multiple charges including murder and possession and use of illegal firearms.