Dhaka: In the first crackdown on an extremist Islamic outfit by the Khaleda Zia government, Bangladesh has banned the newly formed "Shahadat-e-al-Hikma", a group funded by underworld don Dawood Ibrahim.

"After observing activities of al Hikma, it was found to be threat to peace and security of the country and that's why the decision has been taken to ban it," Bangladesh Home Minister Altaf Hussain Chowdhury told Parliament on February 16.

The Minister, who announced the decision while making a statement on the blasts at a religious institution in Northern Dinajpur on February 13, said the ban was effective from February 9, a day after the outfit was formally launched.

Three people, including two teacher of the madrassa, where the blasts occurred, were arrested after the incident.

Kawsar Hossain Siddique, convenor of al Hikma, while announcing its launching on February 8, had said the outfit was financed by Dawood Ibrahim, who heads the list of most-wanted terrorists in India and is the prime accused in the Mumbai blasts case.

"The government was determined to bring to book those who are out to destabilise the administration and defamed the country abroad," Chowdhury said.

The Opposition welcomed the move saying the government had admitted to the presence of terrorist elements in the country.

This is the first time an Islamic organisation was banned by the Bangladeshn Nationalist Party (BNP)-led coalition government in which the fundamentalist Jamaat-e-Islami is an important partner.

Suranjit Sen Gupta of main Opposition Awami League called for formation of a Parliamentary committee to probe into the funding and source of arms flow of such terrorist outfits. However, government rejected the demand and Awami League workers staged a walkout in protest.

Describing, al Hikma as "a political party", Siddique had claimed the outfit had 10 thousand commandos and 25 thousand fighters working in the country to bring Islamic revolution.

Siddiquie has gone in hiding since then, media reports said in Dhaka.

He claimed that a prominent member of Begum Zia's Cabinet Barrister Moudud Ahmed, Minister for Law, Justice and Parliamentary Affairs has helped al Hikma, vernacular daily 'Bhorer Kagoj' reported on February 16.

Ahmed is yet to comment on the allegation made by Siddiqie.

In the last four years one hundred persons have been killed and five hundred injured in 10 major blasts that have rocked the country.

Police had issued "red alert" in Northern districts following Thursday's (Feb 13) powerful bomb blasts in which Islamist outfit Za'amatul Mujahidin Bangladesh is said to be involved.

PTI