City Harvest church founder Kong Hee and four others from his ministry were arrested by the police on Tuesday morning, two years after investigations first began into the homegrown church.
Mr Kong, deputy pastor Tan Ye Peng and three other church leaders were picked up by the police at their homes early on Tuesday morning and taken in for questioning over the alleged misuse of church funds as well as alleged breaches under charity laws.
All five are expected to be produced in court on Wednesday.
This latest development comes two years after the Commercial Affairs Department started a probe into the alleged misuse of church funds in May 2010.
Mr Kong stepped down as chairman of City Harvest Church in April 2011 in a leadership reshuffle that had half of the ministry's ten-member board replaced.
City Harvest Church is one of Singapore's largest churches with more than 30,000 members.