The murder of medicine trader Yatendra Khaitan in Sitamarhi on December 31 and release of Muzaffarpur businessman Narayan Prasad on January 1 against ransom has rattled the fraternity.

North Bihar Chamber of Commerce and Industry (NBCCI) chairman Motilal Chaparia said criminal activities and attacks on traders had increased. 'Demands for levy and extortion have resurfaced, which are a matter of great concern,' he said.

He added that criminals lodged in Muzaffarpur jails were calling the shots from behind the bars and were using their henchmen to extort money from the traders.

Sources in the police echoed what the NBCCI chairman apprehends. 'One gang led by history-sheeter Pawan is active in Muzaffarpur area. It uses minors from remand homes to extort money from traders,' said a source.

Even zonal inspector-general (IG) of police Parasnath admitted that one Saroj Rai, a history-sheeter released from jail in 2012, had turned into a major criminal in Sitamarhi. Rai is an associate of Santosh Jha, a criminal presently lodged in Muzaffarpur jail.

The IG said Rai had been made a named accused in the Sitamarhi medicine trader murder case and had earlier sought Rs 20 lakh as levy from the trader.

The IG said he had held a high-level meeting with deputy IG (Tirhut) A.K. Mishra and senior superintendent of police (SP) of Muzaffarpur apart from the SPs of Vaishali, Sitamarhi and Sheohar districts to launch a special drive to nab extortionists, who were disturbing the traders. Premanshu Kumar and two others associates of Saroj Rai have been arrested. Rai has a bounty of Rs 25,000 on his head.

Muzaffarpur senior SP Ranjit Kumar Mishra said the representatives of the district unit of Petroleum and Diesel Traders' Association, an outfit of NBCCI, discussed with him about the fear following the surge in extortion cases in the run-up to the polls.

Senior SP Mishra said the petroleum and disease traders would be provided firearm licences to counter criminals.