Robert Finnigan, 46, who earlier this month successfully defended his Morley North seat on the City Council, was interviewed at Holbeck police station. It has been confirmed he was not arrested. A file will now be submitted for a decision on whether to prosecute.
Coun Finnigan, leader of the Morley Borough Independent group, won his seat by more than 2,000 votes.
However, a group led by former councillor Stewart McArdle, questioned his eligibility to stand and announced they were preparing to challenge the result.
At the same time, a complaint was also lodged with police.
The allegation against Coun Finnignan is understood to centre on the candidate nomination papers he tendered.
Candidates must either live, work or own a property in the ward they stand in.
Those pressing for the election petition maintain Coun Finnigan does not meet any of those criteria.
Coun Finnigan said: ""I reject all of the allegations against me. I would argue that my eleciton was legitimate, and continue to argue that." He added that the complaints were politically motivated.