The case — the latest in a series of investigations concerning corruption in local councils — has national implications because of Mr Bitan’s pivotal role in the Knesset.
As coalition whip, he has shepherded controversial bills through the law-making stages and made sure that the six parties in the coalition fell into line.
But he failed last weekend to pass the so-called “recommendations law”, which would have forbidden the police to recommend indictments at the end of its investigations. Likud MKs admit the law was intended to give Mr Netanyahu some breathing space from his own corruption investigations.
It fell through when members of the centrist Kulanu party announced they would not vote for it. The bill will now be redrafted to make clear it would not apply to existing investigations.
Mr Bitan, who denied all the allegations against him, said he had no plans to resign as whip even though he has been politically weakened.