Hong Kong's Sun Hung Kai Properties Ltd (0016.HK) said Friday that its former chairman Walter Kwok was arrested Thursday night by the Independent Commission Against Corruption (ICAC). He was later released on bail.

The case relates to the company's alleged corrupt practices to get sanctions for construction projects. According to a Reuters report, payments totaling more than $2.5 million to Rafael Hui, formerly the No. 2 official at Hong Kong's biggest developer, from Sun Hung Kai-linked entities are part of the bribery investigation.

In March, in connection with the investigation into offenses suspected to have been committed under the Prevention of Bribery Ordinance, Hui, along with Thomas Kwok and Raymond Kwok, co-chairmen of Sun Hung Kai, was arrested by the city's anti-graft body. Thomas Chan, the executive in charge of land purchases for the developer, was also arrested by the ICAC.

Meanwhile, Thomas Kwok and Raymond Kwok denied charges of corrupt practices.

Following the arrests of Kwok brothers, Sun Hung Kai shares fell 15 percent in Hong Kong trading. Shares of Sun Hung Kai Properties were suspended from trading Friday. Shares of SunEvision Holdings Ltd, which is another company run by the Kwok brothers, was also suspended from trading.

In 2008, Walter Kwok was expelled as Sun Hung Kai chairman following a family dispute. In 2010, he was removed as a beneficiary of the family trust that controls Sun Hung Kai.

Earlier this week, Kwok denied that he was involved in a bribery probe.