Guwahati, Jan 27 (IANS): Two persons were arrested in Assam’s Nagaon district for allegedly demanding extortion money from a local businessman using the name of the banned militant outfit ULFA-I, police said on Saturday.

The arrested persons have been identified as Fakar Uddin and Hussain Ali.

Fakar is a native of Ruporihat area in the district.

Abdul Hasim was a supari businessman and the accused Fakar Uddin demanded Rs 50 lakh in cash on the name of ULFA-I, according to police.

A senior police officer said that the accused had threatened to shoot Hasim's two kids if he didn't give the demanded amount of money.

Hasim had also earlier filed a complaint at the Ruporihat Police Station.

Based on the FIR, Fakar Uddin, who was allegedly demanding money in the name of ULFA-I was arrested by the police on Friday night.

Police said Fakar has confessed during the interrogation regarding the involvement of another individual, Hussain Ali, who was also later arrested by the police.

Whether the arrested persons have any direct links with the ULFA-I is not clear yet. The police mentioned further investigation in the matter is underway.