All business establishments remained closed at Demow in Sivasagar district on Friday in protest against Thursday’s killing of two persons in a high-intensity blast by suspected Ulfa(I) rebels.

The attack killed Kamal Agarwalla, owner of Hanuman Hardware shop located on Nitai Road at Demow Chariali, and Arup Gupta, owner of a bicycle shop at Dehingmukh town in Sivasagar district. Gupta died on the spot while Agarwalla died at the Assam Medical College and Hospital in Dibrugarh.

Eight persons have been taken into police custody on the basis of their call records with suspected Ulfa (I) cadres, officer-in-charge of Demow police station Sanjib Baruah told The Telegraph. They are Pankaj Bora, an employee of Agarwalla’s shop, Nitul Hazarika, Prabhat Kahnikar, a resident of Nitaipukhuri, Kishore Patel, an employee of Demow petrol pump, Jiyarul Hussain of Nimonagarh, Bedanta Nath, Tangbhiu from Dimapur and Izzal.

State power minister Tapan Kumar Gogoi visited Sivasagar on Friday and met the families of the two victims. He was accompanied by Sivasagar deputy commissioner Pallav Gopal Jha. The minister announced an ex gratia of Rs 5 lakh each for the kin of the deceased.

He said, “Chief minister Sarbananda Sonowal instructed me to come here and meet the victims’ families. We condemn such acts against innocent people. Those who have committed such a barbaric act should be booked under law and stringent punishment should be meted out to them. The police are investigating the case.”

The incident has left the business community in Demow in shock.

A member of Demow Traders Association said, “Security agencies and police have failed to provide security to the people. Intelligence agencies have failed miserably because such incidents have rocked Assam repeatedly in the past month Five people were killed in Dhola. We demand security for our business community. Our people are targeted by such groups.”

Family and friends said Agarwalla was “very popular” in Demow and had a good relation with everyone he knew. “It’s an unfortunate incident. Those who killed them should be booked under law and strict punishment should be meted out to them. The incident has shocked us,” Pankaj Sonowal, a resident of Demow, said.

Sources said Agarwalla’s younger brother, Manglu, had assisted the police in nabbing two Ulfa (I) linkmen from Demow petrol pump, where they had called him to collect extortion money from him two months ago. After that Manglu was given police protection. Ten years ago, suspected Ulfa (I) militants had also opened indiscriminate fire at Agarwalla’s shop.

Police sources said the outfit had collected information about Agarwalla’s shop in the last few days and planned the blast. It is suspected that an improvised explosive device was planted inside the shop.

Assistant director-general of police (eastern range) R.P. Meena told this correspondent that nothing could be said right now and investigations were on. “We have collected samples from the blast site and will examine them.”

A police source said a four-member Ulfa (I) team had sneaked into Sivasagar from Charaideo district and had been planning subversive activities to destabilise peace.

Security forces have launched an operation against the outfit in both the districts.