Avigdor Kelner, who served as the CEO and chairman of Polar Investments, was detained Thursday in connection with the so-called Holyland affair.
The corruption case is said to be one of the most serious affairs in Israel's history and involve tens of millions of shekels in bribes in exchange for advancing real estate projects.
Kelner had been arrested on suspicion of paying bribes, mediating in the payment of bribes, money laundering, and additional offences.
The 67-year-old suspect also holds stocks in the Holyland Park Company. According to police suspicions, in order to advance the Holyland project in the capital he paid hundreds of thousand of shekels in bribes to Jerusalem city officials involved in approving the construction project.
The National Fraud Unit in the Israel Police has been working on the affair over the past week, while Israelis were celebrating the holiday of Passover. Dozens of investigators were called in to prepare the last documents before the affair was cleared for publication Wednesday.
Police Commissioner Dudi Cohen was briefed on the details of the affair. A gag order has been placed on many of the details.