The action against Dawood comes almost two years after Prime Minister Narendra Modi's 2015 United Kingdom tour when he reportedly handed over a dossier concerning the underworld gangster to his then British counterpart David Cameron.
The Treasury sanction document lists three recorded addresses for Dawood Ibrahim in Pakistan including one called The White House in the seaside Clifton area in Karachi. The frozen assets include properties in Midlands, a Warwickshire hotel and also residential properties in Midlands.
In 2015, Forbes magazine had estimated that the 61-year-old criminal was worth $6.7 billion (more than Rs 42,000 crore).
Dawood, the prime accused in the 1993 Mumbai serial blasts in which 260 people were killed, reportedly runs his crime empire from Pakistan's Karachi.
Underworld don Dawood Ibrahim Kaskar, who is wanted in India in connection with the 1993 Mumbai serial blasts case, is the "second richest criminal ever" after Colombian drug lord Pablo Escobar.
The dreaded gangster also carries a rewards totalling United States dollars 25 million on his head for any information leading to his arrest, according to the Forbes business magazine. He fled the country post the bombings and is understood to be hiding in Pakistan. The CBI, Interpol in India, has already provided Dawood address - house no. 37, 30th street, Defence Housing Authority, Karachi, as his permanent address in Pakistan to the Interpol.
Even though fugitive gangster Dawood Ibrahim has been declared a global terrorist, authorities are facing "legal hurdles" in seizing his properties in the city, a senior police official said today.
However, according to DNA, a fortnight ago, former Pakistan president Pervez Musharraf had hinted that Dawood was in his country, but also added that it would not assist India to capture him.
Pakistan has consistently denied that Ibrahim is in Pakistan despite India maintaining that that he continues to live in a palatial house in Karachi.
Off late, Narendra Modi government has been able to establish India as a growing influence on the world map and one such example of the same has come from the UK.