Karachi: Altaf Hussain, the Pakistani politician whose arrest in London earlier this week sparked violence in Karachi, was released on Saturday on bail.

Scotland Yard has accepted bail application and allowed him to go home, Aminul Haque, a Muttahida Qaumi Movement spokesman for Hussain, said in a telephone interview. The man arrested on 3 June has been released on bail to a date in July pending further inquiries, police said in a separate statement.

The benchmark KSE 100 index fell to the lowest in a month after reports of Hussain’s arrest. Cars and buses went up in flames in Karachi, the Pakistani commercial hub under MQM control since 1986. Local authorities said they suspected the actions were in retaliation to the arrest.

We expect him to address the protestors later, MQM’s Haque said.

UK police started a probe last year after the killing of a senior party leader in London, Imran Farooq, in 2010. Authorities searched Hussain’s house as part of the investigation and found 400,000 pounds that were undocumented.

We have receipts and evidence the money was donated to the party, MQM leader and a lawmaker in Pakistan’s Senate, Babar Khan Ghauri, said earlier this week. We have nothing to worry about. We are cooperating and will provide this proof when the time comes.

In an e-mailed statement, London’s Metropolitan Police Service said it released on bail the 60-year-old man arrested on 3 June on suspicion of money laundering. It didn’t identify the man, in line with its custom. BLOOMBERG

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