The assertion by Union Home Minister Rajnath Singh in the Lok Sabha was, however, rubbished by Pakistani High Commissioner Abdul Basit who said Dawood is not in his country.
Singh vowed to do everything to bring Dawood to justice.
"Whether we have to pursue Pakistan or pressurise it, we will not rest till Dawood Ibrahim is brought back," Singh said and averred that India has maintained pressure on Pakistan at all levels over the issue.
Singh's assertion came amid Opposition attack over a Home Ministry's reply to a question in Lok Sabha last week that it was not aware about the gangster's location.
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He had then sought to deflect the criticism, saying the stand was similar to the one taken by the UPA government in Parliament in May 2013 and signalled a rethink. He had said he will make a statement in Parliament today.
In the statement, Singh said, "India has credible information about his(Dawood) presence in Pakistan... Despite overwhelming documentary and other evidence handed over to Pakistan, Pakistan has failed to locate Dawood Ibrahim and initiate legal process."
Noting that a red-corner notice issued by Interpol was pending against Dawood since 1996 and a UN Security Council's special notice against him was also pending since 2006, the Home Minister said Pakistan was bound by international obligations to locate and extradite him.
At a "Meet the Press" event organised by UP Press Club in Lucknow, Basit rubbished the assertion by Singh in response to a question on the issue.
"Uskey baarey mein yehi kehna hai ki woh sahab Pakistan mein nahin hain (The only thing I have to say about that gentleman is that he is not in Pakistan)," Basit said.