Violence grips Pakistan's Karachi as powerful politician arrested in London

Unidentified persons torched four vehicles and fired in the air in the Pakistani commercial hub of Karachi on Tuesday shortly after the police in London arrested a powerful Pakistani politician Altaf Hussain over money laundering charges.

Altaf Hussain, the self-exile leader of the Mutahida Qaumi Movement or MQM, lives in London, was taken into custody on Tuesday by the Scotland Yard. Karachi is the stronghold of the ethnic Urdu-speaking people.

Reports earlier suggested that Hussain, 60, was being investigated for money laundering worth nearly 400,000 pounds.

The British consulate in Karachi has also been closed and sources said that the foreign staff members had left the city earlier. "We are seriously concerned at the police raid on the house of our leader. The action is beyond understanding," MQM leader Dr Farooq Sattar told a news conference in Karachi.

He said Hussain has not committed any crime and the MQM will opt for legal battle. He also asked the MQM's activists to remain calm and avoid any violence.

Some leaders of the MQM said that Hussain is at his home in an apparent move to calm down the situation.

As the news of Hussain's arrest was received in Karachi, the shopkeepers started closing shops. The transporters stopped bringing vehicles on roads fearing a backlash. Police said miscreants torched at least eight passenger buses in different parts of Karachi.

Announcements were made to close Karachi that caused panic among the people. A massive traffic jam was also witnessed on main roads as the people were trying to reach homes to avoid any untoward incidents.

Police also reported some attacks on government offices and shops. Long queues were seen on fuel stations, fearing the MQM possible protest could disrupt life in the city.

The MQM denied its involvement in the violence. Paramilitary troops also started patrolling in sensitive areas.

Section of the media reported that the Karachi Stock Exchange ( KSE-100 index) fell 180 points immediately after the news was received in the city.

The MQM leaders said last week that Hussain's bank accounts in London were being frozen.