The Tel Aviv Magistrate's Court decided on Thursday to release Ya'akov Alperon to a five-day house arrest.
The underworld figure was arrested on suspicion of his involvement in a brawl in a Tel Aviv restaurant on Sunday, during which two gangs allegedly headed by Alperon and Amir Mulner, drew pistols.
At the beginning of January, Mulner was stabbed in a fight, supposedly by Ya'acov Alperon's 18-year-old son Dror, during an underworld summit at the Daniel Hotel in Herzliya. His bodyguards were among those held for questioning after Sunday's brawl.
Members of the Alperon gang, according to Channel 2 vandalized a car belonging to a member of Mulner's gang outside the restaurant.
The judge delayed Alperon's release following a request by police to submit a petition to Tel Aviv District court.
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