Former Polly Peck tycoon Asil Nadir has vowed to issue a writ against police for wrongful arrest following his release from custody.
The 69-year-old, who is on bail and faces a multimillion-pound theft trial next year, was arrested at his home on Saturday for allegedly breaching a midnight to 6am curfew that was part of his bail terms.
But later he emerged from Charing Cross police station in London without being charged and with a police apology.
Speaking on the police station steps, Nadir said: "Unfortunately, I have been a victim of an unlawful arrest, claiming that I had broken my bail conditions. That was not the case.
"I have been released with an apology but I am hoping that this sort of unlawful behaviour, as I have claimed for many years, does not take place in this country. It's such a great shame for this country."
The former Tory party donor, supported by his 26-year-old wife Nur and barrister William Clegg QC, went on: "I was in my house with several witnesses, CCTV cameras in my house, and I have never broken this bail. But they said that I had broken it, which was not the case, but now we have been told the tagging machine and everything showed that I was in the house as I had said.
"We are taking, on Monday morning first thing, we are issuing a writ, taking proceedings against the people that have created this most unfortunate situation."
A Scotland Yard spokesman confirmed that Nadir was released and said no further action would be taken.
Nadir was originally charged with 66 offences of theft alleging a £34 million fraud following the collapse of his Polly Peck empire. He fled in 1993 to northern Cyprus before the counts - put into fewer condensed charges - could be put to him at trial. But on July 30 this year Mr Justice Bean was told he wanted to return to fight the case.
On Saturday night, a Serious Fraud Office spokesman said: "The SFO has been informed that a 69-year-old man has been arrested for a breach of his bail conditions. A custody officer is assessing the severity of the breach of bail."