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The spokesperson said Sheikh, alias Babla, was arrested on Saturday evening.
He was a ”close criminal associate” of Riaz Akhtari, one of the two main accused, and took an active part in the conspiracy to kill the tailor, the spokesperson said.
Kanhaiya Lal was killed with a cleaver inside his tailoring shop on June 28.
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The duo was arrested within hours of the killing. Four more persons were arrested subsequently.