Spanish police are hunting a leading member of the Dutch drugs mafia after a court let him out on bail, Spanish media report.

Karim Bouyakrichan gave himself up to police in Marbella following a five-year investigation into large-scale money laundering activities and, according to El Confidencial, his involvement in threats against princess Amalia. The Dutch heir to the throne was then obliged to give up her studies in Amsterdam and, as emerged during the recent visit of the Spanish royals, spent a year in Madrid.

After his arrest two months ago, Bouyakrichan was heading for prison on the orders of a court in Marbella but following an intervention by his lawyer, a court in Málaga ordered his release on bail of €50,000.

He also had to hand in his passport to prevent him leaving the country and was told to report to police twice a month despite warnings he would take the opportunity to flee – which is what happened.

In what EL País called, a “total fiasco” the court failed to honour an agreement that if at any time during the money laundering case Bouyakrichan were to be released he was to be extradited to the Netherlands, where he is wanted for drugs trafficking.

The Dutch public prosecution office has commented it does not know why this did not happen in the event and has asked the Spanish authorities for clarification.

Bouyakrichan, who is considered a “capo” of the so-called “moccro mafia”, is the brother of Samir “Scarface” Bouyakrichan who was shot dead in a restaurant in Benahavis, on Spain’s southern coast, in 2014.

According to police, Samir Bouyakrichan had been involved in a gang war with drugs kingpin Ridouan Taghi who is currently appealing against his life sentence for several murder charges.

It is thought that Karim Bouyakrichan took over his brother’s operation and, based on intercepted messages, police and the justice department concluded he then became a target.

Spanish justice minister Félix Bolaños has said the escape was “worrying” and has issued a warrant for his arrest.