A councillor was excluded from his party after he was arrested over allegations of fraud.
Vijay Shah, who represents Wembley Central ward on Brent Council, was held and questioned by Hertfordshire Police in March on suspicion of "fraud by abuse of position".
He has been bailed to return to Watford police station in September. Last week, it emerged Mr Shah had been forced out of the Brent Liberal Democrat group but councillor Paul Lorber, leader of Brent Council, refused to comment on the reason behind the decision.
Yesterday (Wednesday), Mr Lorber said: "All I know is he has not been charged so we are not in a position to comment.
"It is my understanding the allegations have nothing to do with his work on the council -that is what he told us."
A spokesman for Hertfordshire Police said: "A 44-year-old man from Wembley has been arrested on suspicion of fraud by abuse of position.
"He was arrested on March 8 by officers from Hertfordshire Police. He has been bailed by Police until September 10, to return to Watford police station."
Mr Shah, now an independent councillor, was unavailable for comment.