Several acts of misconduct, such as the use of company property for personal purposes, have been discovered and will be removed from office.
Japan's Asahi Shimbun newspaper said the Tokyo prosecutor's office was questioning Carlos Ghosn, which caused Renault's French shares to shed more than 12 percent in morning trade in Paris.
Carlos Ghosn, a Brazilian-born businessman famous for restructuring Renault and Nissan in the early 1990s.
Renault rushed to rescue Japan's struggling car company in 1999, while reducing costs and jobs in a massive operation.
In 2016, Carlos Ghosn took over the troubled Mestoichi administration after Nissan bought a third of its shares for $ 2.2 billion while it was facing a scandal over fuel consumption readings that led to a drop in sales.
Carlos Ghosn is a well-known figure in Japan and is a major defender of the country's auto sector.