Melbourne identity Mick Gatto and his wife Cheryl have been arrested during dramatic raids at their home. 

It is understood the arrests come as part of an investigation into construction industry corruption being led by Victoria Police's Taskforce Hawk. 

Detectives executed a search warrant at the couple's Mornington Peninsula home on Wednesday as part of an investigation into 'alleged financial offences'. 

'Two people at the address, a man and a woman both in their 70s, were arrested and are being interviewed by police,' a police spokeswoman said.

'Further information will be released later today.'

No charges have been laid. 

A media pack has converged outside the couple's $3million Mount Martha home, where detectives remain. 

'Mick Gatto was actually taken into custody by these detectives last night, and was brought back to his house in a police van with his wife,' 3AW afternoon host Jacqui Felgate told listeners.

'Police are still at scene, they have been taking boxes, I think there are about six cars there at the moment, and they have been taking boxes in and out of the property all day.' 

Victoria Police set up Taskforce Hawk two years ago to investigate criminal activity in the construction sector.

For decades, Gatto has worked as a mediator in the Victorian construction industry.

Earlier this year, a report into the industry and the Construction, Forestry and Maritime Employees Union by Geoffrey Watson SC described Mr Gatto as having a 'malignant influence', alleging he had 'damaged the building industry and damaged the Victorian economy - maybe permanently.'

Mr Gatto denied any wrongdoing, insisting he was 'not above the law' and had only ever acted as a middleman between builders and the unions.

'Unfortunately they're looking for a scapegoat, and I refuse to be one,' he told 3AW at the time.