The trouble, which started from Lyari and its adjoining areas in old Karachi in the afternoon on Wednesday, escalated after Waja Karim Dad, former member of National Assembly or lower house of Parliament, and four of his associates were gunned down while sitting at a restaurant to break their Ramzan fast last evening.
A gang of seven to eight unidentified gunmen also abducted 13 employees of a private company but later released 12 of them, police said today.
Geo News reported that 42 people have been killed in the fresh wave of violence, including 26 who lost their lives overnight due to incidents of firing and torture.
Crime-infested Lyari and its adjoining areas have for months now been badly affected by gang wars between high- profile criminals and political parties accusing each other of patronising these gangs.
Police said the violence spread to nearby areas and five bodies belonging to one family were recovered from Mauripur, four from Lasbella and three each from Garden and Ranchore lines today.
The violence and killing of Wajah Karim Dad led to the complete closure of markets and shopping areas in the old city areas of Lyari, Shoe Market, Bolton Market, Paan Mandi, Lee Market and Jodia Bazar.
Residents in Pan Mandi said the situation was very tense in these old areas with sporadic firing being reported at regular intervals.
The case relates to alleged criminal conspiracy between state government official and Dubai-based Emmar group for diluting state government's Andhra Pradesh Industrial Corporation's stake in a posh township developed through a joint venture, the agency spokesperson said.Reacting to the development, Executive President Emmar-MGF Sanjiv Saddy said, "As a corporate policy, the group always cooperates with the investigating agency and adheres by the law. We are providing all the documents sought by the CBI officials and cooperating with them."
The Andhra Pradesh High Court had on August 10 ordered a CBI inquiry into the land allotments made to Emaar by the then Rajasekhara Reddy Government and dilution of the stake of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) in the joint venture with Emaar for the development of a township in the city.
Meanwhile, Sobha Nagi Reddy, a Praja Rajyam MLA and supporter of Jagan, told reporters that the searches being conducted by CBI were part of a "conspiracy" against the rebel Congress leader.
"People are observing this. This is a conspiracy against the family of late Y S Rajasekhara Reddy. Congress will have to pay heavy price for this," the MLA said.