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The 42-year-old man, Esmail Jafarzadeh, allegedly confessed to the brutal murder after the body of the girl, Atena Aslani, was found in the garage of his house.
Seven-year-old Atena Aslani went missing on June 19 after walking away from her street vendor father, sparking huge concern on social media.
The case provoked the anger of Iranians on social media and Jafarzadeh was killed in front of a cheering crowd in a square in the northwestern town of Parsabad, Ardebil Province.