The 31-year-old was arrested along with three other people following an extensive police investigation into the incident, with police alleging the crash was staged to commit insurance fraud and to avoid court.

A police spokeswoman confirmed Mr Mehajer had been refused bail, and is due to face Waverley Local Court on Tuesday afternoon.

Mr Mehajer was driving a Mercedes AMG when it was involved in a collision with a Mitsubishi Outlander on Delhi Street, Lidcombe, about 8.45am on October 16.

He was initially trapped in his vehicle, before being taken to Westmead Hospital for treatment. No one else was injured in the incident.

The crash prevented Mr Mehajer from attending the first day of his trial at the Downing Centre Local Court for allegedly assaulting a taxi driver.

Detectives from Flemington Local Area Command established a strike force to investigate the crash.

Just before 7am on Tuesday, Mr Mehajer was arrested at his home in Vaucluse, and a 28-year-old man was arrested at a home in Lidcombe.

The men were taken to Waverley and Bankstown police stations respectively, and they will be charged with perverting the course of justice and conspiracy to cheat and defraud, police said.

A 30-year-old man and a 31-year-old woman were also arrested on Tuesday morning at a home in Lidcombe.

The pair was taken to Auburn Police Station where they are expected to be charged with conspiracy to cheat and defraud.

Police said investigations are continuing, and further arrests were expected.

Flemington Local Area Commander, Detective Superintendent Philip Rogerson would not name Mr Mehajer, but said allegedly staging a car crash was "extensive lengths to go to" to avoid facing court.

"I can say that the pervert the course of justice was in relation to the court matter on that particular day, and the cheat and defraud is in relation to the insurance culminating out of the car accident," he said.

If found guilty, the charges carried "lengthy terms of imprisonment", Detective Superintendent Rogerson said, adding they had "sufficient" evidence and witness accounts to put to the court.

The week of the car crash Mr Mehajer also was due to face a separate trial, for allegedly assaulting a Channel Seven journalist as he left Sydney City police station following his alleged assault of the taxi driver. He was also expected to face court that week over two commercial disputes.

Mr Mejaher's lawyers successfully applied to have the trial hearings postponed in light of the crash, and the magistrate re-listed the trials for January 31 and February 19 respectively.

At the time, Mr Mehajer's lawyer Brett Galloway told the magistrate his client had been involved in a "relatively serious" crash on the way to the court.

Video footage from the crash showed Mr Mehajer in a neck brace on a stretcher as he was loaded into the back of an ambulance. Mr Mehajer's passenger, and the two women aged 31 and 32 who were in the Mitsubishi, were not injured in the crash.

In the days after the crash, a spokesman for Mr Mehajer's companies said any suggestion that the crash was staged was "ludicrous".

"For those to make such remarks reflect a sheer evil persona," the spokesman said in an email to Fairfax Media.

The Detective Superintendent said staging a car crash was unacceptable behaviour.

"It's not acceptable to the police and in particular the emergency services that freed them on that particular day out of that car," he said.

"And obviously, the insurance companies and people like yourselves, who have to pay your premiums."

Mr Mehajer was elected to Auburn Council in 2012 and later became deputy mayor, before he shot to fame with his elaborate wedding in 2015.

With Michaela Whitbourn