He was due to face the Blacktown Local Court on Thursday, according to NSW court records.
Baghsarian, 85, was allegedly kidnapped from his North Ryde home just after 5am on February 13 in what police believe was a case of mistaken identity.
His body was found near a golf club in Pitt Town 11 days later.
On Wednesday morning, tactical officers executed a search warrant at a Seven Hills home, where Donnelly and a 23-year-old woman were arrested and taken to the Riverstone and Blacktown police stations.
During the search, police seized firearms and firearm parts, ammunition, prohibited weapons, a significant quantity of prohibited drugs, mobile phones and electronic devices.
Donnelly has since been charged with murder, taking/detaining in company with intent to ransom occasion actual bodily harm, possessing an unauthorised firearm, possessing ammunition without holding a licence/permit/authority, and acquiring a firearm part without authority to do so.
Officers seized firearms, ammunition and a large haul of illicit drugs. Photo / NSW Police
He also faces three counts of supplying a prohibited drug (less than indictable and commercial quantity), possessing a prohibited drug, and failing to comply with a digital evidence access order direction.
The woman has been charged with contravening a prohibition/restriction in a domestic apprehended violence order.
Detective Acting Superintendent Andrew Marks said investigators would allege Donnelly “facilitated and recruited others” to assist in Baghsarian’s kidnapping and detention.
“We’ll also allege that he arranged [for] people to dispose of Mr Baghsarian’s body.”
Police will further allege Donnelly was physically involved in the kidnapping and detention, was present at the North Ryde address during the abduction, and transported Baghsarian to the Dural property where he was held.
Donnelly is also alleged to have been captured in CCTV footage released last week showing three men near what police have described as a “stronghold” in Dural, northwest of Sydney.
“We will allege he is depicted as the male holding the mobile phone with the torch on,” Marks said in reference to the footage.
Chris Baghsarian was kidnapped from outside his North Ryde home. Photo / NSW Police
Investigators also allege Donnelly was seen travelling in a blue Hyundai connected to the case. That vehicle has since been identified and was found burned out at Glenbrook railway station on February 26, days after it was seen near the Dural property.
“We believe up to nine people were involved in this,” Marks said.
“We will continue the investigation to identify those that were involved, no matter what part they played.”
Two men have already been charged over Baghsarian’s death.
Gerard Andrews, 29, and Daniel Stevens, 24, were arrested in Sydney last month and charged with murder and kidnapping with intent to ransom or cause grievous bodily harm.
Marks also confirmed investigators were still working to establish whether money was exchanged in relation to the alleged kidnapping, including any ransom arrangements.
Police said the group’s activities spanned multiple locations, including Baghsarian’s North Ryde home, the Dural property where he was allegedly held, and the area where his body was ultimately found.
Baghsarian was mourned by family and friends on the Armenian Lawn at Macquarie Park Cemetery in North Ryde, where he was laid to rest on March 16.
His cousin Arthur Hagopian told the Daily Telegraph Sydney that his family were “absolutely devastated”.
“He was an upbeat, kind and gentle soul who lived for his family and his grandchildren,” Hagopian said.
“He should never have gone the way he did.”
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