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Vinayagamoorthi Muralitharan alias Karuna Amman was arrested by the Financial Crimes Investigations Division after being questioned for hours for allegedly misusing a state vehicle.
Amman was a former rebel leader who virtually ruled the Eastern province when he was part of the Liberation Tigers of Tamil Eelam (LTTE).
He broke away from the LTTE in March 2004 and later entered mainstream politics.
He was a deputy minister in the Rajapaksa administration but currently holds no political position. Rajapakse lost the presidential election in 2015.
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