Ousted Labor MP Will Fowles has been arrested and questioned by the Victoria Police sexual crimes squad over assault allegations involving a state government employee.
Police confirmed a 45-year-old man was interviewed on October 12, but was released without charge as part of an ongoing investigation.
Fowles has strenuously denied any allegations or wrongdoing.
"Detectives from the Sexual Crimes Squad executed a warrant at a Ringwood address on 12 October as part of an ongoing investigation into an incident in the Melbourne CBD," a Victoria Police spokesperson said.
"A 45-year-old Ringwood man was arrested at the property and interviewed by police. He was released without charge pending further enquiries.
"As the investigation is ongoing and given the sensitive nature of the matter, we will not be commenting further at this time."
Fowles, the member for Ringwood was forced to resign from the parliamentary Labor Party in early August, at the request from former Premier Daniel Andrews.
"The safety of everybody in the workplace is taken very seriously," Andrews told reporters in August.
"It's no longer acceptable to me for Fowles to remain as a member of the parliamentary Labor Party."
Fowles has been contacted for comment.