The island council president of Haa Alif Atoll's Dhidhdhoo, Ali Hashim, was arrested late Tuesday over allegedly forging counterfeit documents.
Following the arrest, the police had raided his residence in the island, though it remains unclear whether they had seized anything.
The police had also raided Dhidhdhoo Island Council's office last month, and summoned one of the councillors in relation to the case.
A member of main opposition Maldivian Democratic Party (MDP), Hashim had been earlier suspended for a month by the Local Government Authority over calling to enforce the Supreme Court's landmark order on February 1 to release political prisoners.
He was also suspended last September for issuing a public letter implying that he would draw up a list of Dhidhdhoo residents that would receive the row houses developed in the island, in contravention to the official list that had been drawn up by the Ministry of Housing and Infrastructure.