The proposal may be placed before Denmark Foreign Minister Villy Sovndal during his proposed visit to India soon.
According to the proposal, if the trial before an Indian court in the Embassy premises convicts Davy, he may have to undergo the prison term in a Denmark jail.
Union Home Secretary R K Singh discussed the issue of Davy with Indian Ambassador to Denmark Ashok Attri last week here.
The Purulia arms drop case relates to an incident on the night of December 17, 1995, when an AN-26 aircraft had dropped arms and ammunition in West Bengal's Purulia district. The consignment had hundreds of AK-47 rifles, pistols, anti-tank grenades, rocket launchers and thousands of rounds of ammunition.
Five Latvians and British national Peter Bleach were arrested in connection with the case. However, Davy, a Danish citizen and the prime accused in the case, had managed to escape.
Since then, the Indian government has been pursuing the case for his extradition to India with the Danish government.
The extradition order was passed by the Danish government on April 9, 2010. However, Davy had approached a local court challenging the order of the Danish government. The court set aside the order.
