Published Monday, 16 August 2010
Mr Gilligan is being questioned at Antrim serious crime, it is understood.
Last week, police searches were carried out at Mr Gilligan's home in south Belfast and at his office at the Policing Board's headquarters.
A number of unspecified items were taken by detectives investigating a land deal involving Mr Gilligan's property company - Big Picture Developments.
Barry Gilligan has had a high profile role as the first Catholic chairman of the Policing Board.
In a statement last week, Mr Gilligan said he was confident that both he and the company would be vindicated and he said he would co-operate fully with the police.
The father-of-three had initially been expected back at his Policing Board desk this week after recovering from major heart surgery. However, he suspended his return but said he hoped to be back as board chair "as soon as possible".
Barry Gilligan had already faced calls to resign from his role as chairman of the Policing Board before this latest development.
"This is a sensitive and delicate matter and there's no suggestion that we do anything other than resolve this matter as quickly as possible but we have to focus on the work of the Policing Board and I'm sure that's what will be discussed in the next meeting of the board in September", Ulster Unionist spokesperson on policing, Basil McCrea told UTV.
Detectives were called in five months ago by the Northern Ireland Housing Executive to investigate the sale of a site in Nelson Street, Belfast, to Big Picture Developments.