The brother of Australian cricket star Usman Khawaja has been granted bail amid accusations he framed a colleague with a fake terror hit list targeting senior politicians.
A police source has confirmed the brother of the Australian cricket star is now being questioned by detectives in relation to the alleged attempt to pervert justice, and forgery, by making a false document.
Its contents led to the wrongful arrest and imprisonment in August of Mohamed Nizamdeen, a 25-year-old PhD student and colleague of Mr Khawaja's at the Sydney university campus where he works.
However he was released in October after police failed to connect his handwriting to the writing in the notebook.
Pakistan-born Australian batsman Usman Khawaja, who is in Adelaide, is due to make a return from injury this Thursday against India in the first of a four match series and is in no way related to the investigation.
Willing confirmed there is no ongoing threat to the community.
Police will allege he attempted to set Nizamdeen up because of a dispute over a girl.
Asked whether that grievance was over a woman, Mr Willing said: "We will allege that that is part of the process".
"We regret the circumstances which led to him being charged and the time he subsequently spent in custody".
Arsalan, 39, was arrested on Tuesday morning after being pulled over while driving in western Sydney, according to a spokesperson for New South Wales state police.
Mr Willing on Tuesday said Mr Nizamdeen's arrest was regrettable and police have paid his court costs, but stopped short of apologising.
He questioned by police before being charged and was refused bail to appear in Parramatta Local Court today.
Mohamed Kamer Nilar Nizamdeen, who has returned to Sri Lanka, plans to sue for compensation after being detained in Goulburn's Supermax jail following his arrest in August.
"This is a matter for the police to deal with", he told reporters.
"Out of respect for the process, it would be inappropriate for me to make any further comment".