News of the arrest came as thousands of mourners attended the funeral of Ahuva Tomer, Israel’s top policewoman, who died from fire injuries. She was one of the 42 casualties of the disaster.
President Shimon Peres said Ms Tomer “had an extraordinary personality, a rare combination of a mother and a commander.
"That fire annihilated so much, and with Ahuva it has now taken the best of the best.”
Israeli Prime Minister Benjamin Netanyahu has announced that the government is allocating 2,500 shekels (£439) to each person who was evacuated because of the fire.