Domenico Rancadore, 64, who is wanted by the Italian authorities, was arrested by British police at his home in Uxbridge, west London, on Wednesday under a European arrest warrant.
The father of two had been living in the UK as a househusband under the alias Marc Skinner since 1993 while his wife Anne ran a travel agency to support the family.
He is due to appear at Westminster Magistrates' Court this afternoon, when District Judge Quentin Purdy will decide whether he can be allowed bail.
During a short appearance at the same court yesterday, the judge said: "The warrant may be such it has to be discharged.
"There are concerns about the validity of the warrant that has come before the court."
Defending, Euan Macmillan agreed that there are "significant deficiencies" with the document.
Rancadore is facing a seven-year term in an Italian jail for being part of a criminal organisation between 1987 and 1995. He was "a man of honour" in Mafia group Cosa Nostra, controlling Trabia, near Palermo in Sicily, the court heard.
He tried to flee through the back door of his home in Manor Waye when police arrived, but came face to face with a waiting detective constable.
He initially gave police his false name - Skinner is his wife's maiden name - but eventually came clean.
The court heard that Rancadore has a heart condition and was taken to hospital by police when he began suffering chest pains.
The former teacher, whose wife and daughter were in court, came to the UK in 1993 after being acquitted at the end of a three-year court case linked to Mafia allegations.
Mr Macmillan said he has lived "a blameless life" in Britain.
"He has been in this country since 1993, so 20 years. He came here as a free man on his own Italian passport with his family.
"He has led a blameless life in this country for the past 20 years.
"He has lived a quiet life and his family have grown up here. He was as surprised as one would be, understandably, when the police arrived at his property.
"It would be a shock to anybody to find the police at your doorstep after such a great period of time had elapsed.
"His life is here, his family is here, his community ties are here."
The European arrest warrant was issued by Italy in January last year but Mr Macmillan said: "He has done nothing to evade detection, he has simply been living his life."
Shocked friends on the outskirts of the capital described the Mafia bigwig as "one of the best neighbours you could ever have".
Joan Hills, 76, who lives in the same modest suburban street as Rancadore, said she knew him as Marc Skinner and his family had lived in the road for several years.
"I know him very well and he's one of the best neighbours you could ever have," she said.
"They have been here for years. I've seen the children grow up with my children.
"I don't know the ins and outs of this, but they are the nicest people that you could wish to meet."
His semi-detached home has a CCTV camera overlooking the courtyard at the front, which is surrounded by tall hedges.
Tennis coach Terry Stidder, 53, who lives two doors down from Rancadore, said the family moved in about 13 years ago, and Rancadore argued with a neighbour after insisting on planting the hedges.
"When he came in, he planted the bushes. He had a big row with a neighbour. He was saying 'Sorry, but I've got to have this'."
Mr Stidder said Rancadore drove a Mercedes and a Jaguar.
"They always appeared new and he would take a bit of pride in them. He would be out cleaning them," he said.
"We always thought he was a chauffeur because he had such nice cars.
"He was always very well-dressed. Most of the time he would be in a very sharp suit, which, if you think about it, that is your typical Mafioso type."
Source: http://www.standard.co.uk/news/crime/londonbased-mafia-boss-could-be-bailed-8753683.html
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