A council leader has denied wrongdoing after he and five councillors from his party were arrested.
Nottinghamshire Police said four properties in Kirkby-in-Ashfield, Stanton Hill, Sutton-in-Ashfield, and Underwood were searched as part of an investigation into alleged fraud.
While investigations continue, all six Ashfield Independent councillors have been released under investigation.
Jason Zadrozny said: “We have 100% done nothing wrong.”
According to a police spokesman, two men in their twenties and thirties, and three women in their thirties and seventies, were arrested on suspicion of fraud, money laundering, and misconduct in public office.
The three women were also detained on suspicion of perverting the course of justice, with one of them also being held on suspicion of fraud and electoral offenses.
A man in his fifties was also detained on suspicion of fraud and electoral violations.
An Ashfield District Council spokesman said: “The arrests of a number of Ashfield Independent Councillors is an ongoing police matter and the council should not and will not comment further at this time.”