An Irish businessman and property developer was arrested on Tuesday night relating to corruption and bribery allegations.

Jim Kennedy, who left Ireland in 2001, was back in Ireland this week to give evidence in a High Court case against his company Jackson Way Properties.

The Criminal Assets Bureau (CAB) is taking the case against the property company in an effort to recover $73.3 million, money that was received as a result of the sale of land in South Co. Dublin. 

Kennedy, who lives in Gibraltar with his wife in a luxury apartment, was arrested after he left the first day of the hearing in Dublin's Four Courts on Tuesday.

CAB brought Kennedy, 63, in for questioning in relation to money he allegedly paid former government press secretary Frank Dunlop to bribe certain councillors to make sure he got a piece of land rezoned.

Kennedy has been sought for questioning for the past seven years.

Dunlop spent 18 months in jail on corruption charges and recently finished his sentence.

He will also provide evidence this week.

Kennedy has worked as a farmer, auctioneer, publican, amusement arcade owner and property speculator.