A day after India suffered huge embarrassment, the CBI has removed from its list of red corner notice fugitives the name of Wazhul Kamar Khan, who figured in the '50 most wanted' list given to Pakistan but was found staying in a Mumbai suburb.

Khan's name was on the most wanted list as the CBI did not receive any request from Mumbai Police to remove his name from it, CBI spokesperson said.

The initial probe in the lapse has been attributed to both -- the crime branch of Mumbai Police and ATS of Maharashtra Police -- for not communicating about the arrest of Khan to the CBI so that the international warrant could be revoked against him.

Sources privy to the probe said the arrest of Khan needed to be communicated to the CBI which in turn could have withdrawn the Interpol red corner notice.

Khan was arrested by the ATS in May last year along with arms and ammunition and later crime branch arrested him in connection with his alleged role in the 2003 Mulund train blasts. The ATS also arrested him in connection with few other cases.

But none of the two informed the CBI or any central agency to withdraw the Red Corner Notice, the sources said.

Efforts to contact ATS Chief Rakesh Maria and crime branch chief Himanshu Roy through phone and SMS proved futile.

Official sources said that an inquiry has been initiated by the home ministry to find out how Khan was included in the list handed over to Pakistan.

Khan's name is on number 41 in the list which was given to Pakistan in March and made public last week. The list was prepared in consultation with Maharashtra Police, National Investigation Agency and Central Bureau of Investigation.

The probe will cover the whole process of preparing the list at different stages and pin-point the officials responsible in including the name of Khan.