"We’ve now received information that he was possibly at the Monash Medical Centre at the time of the fire," he told the court.

He alleged Mana was involved in preparations for the arson, including instructing a co-accused to fill up two jerry cans with petrol.

"He’s a middle man. He takes orders from somebody above and ... utilises underlings to go and commit the arson," Det Snr Sgt Ferwerda said.

The detective said Mana told two men, including Habib Musa, "to go and set fire to the restaurant".

"That’s based on some telephone intercept material from an unknown male, at this point, who offers him a job," he said.

Prosecutor Edwina Dane opposed Mana's bail, saying he was a risk of re-offending, flight and committing further offences if released.

However, she admitted the prosecution case for the Burgertory fire was "not the strongest" as it was based on circumstantial evidence.

The fire allegedly caused $450,000 in damage. 

Mana is also accused of two car thefts and setting fire to a tobacco store in Bendigo, which resulted in more than $4 million of damage.

Defence lawyer Charles Nikakis asked Magistrate Brett Sonnet to release his client on bail with conditions, including a curfew and ban on leaving Victoria.

Mr Sonnet adjourned his decision to next week.

Mana's co-accused, 27-year-old Musa, is on bail after being charged with arson and car theft.

The Burgertory fire led to clashes between Israel and Palestine supporters, after the shop's owner linked it to his involvement in a pro-Palestine rally and labelled it a hate crime.

However, police have said there was no evidence it was racially or politically motivated.