Leader of Opposition in state Legislative Council Mohammed Ali Shabbir said the seizure of cash, arms and ammunition, and land records shows the "gravity" of the criminal activities Nayeem and his gang were involved in.
"The Special Investigation Team (SIT) constituted by the Telangana government would not be able to conduct a multi- dimensional, multi-disciplinary and inter-state investigation.
"Income Tax and Directorate of Revenue Intelligence (DRI) would be able to trace the origin of illegal cash and how it was accumulated," he said at the Congress Legislature Party Office here.
"(Therefore) CBI is the best agency to conduct a thorough probe. Chief Minister K Chandrashekar Rao should consider our demand and order a CBI investigation immediately," he said.
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Nayeemuddin, 45, wanted in several cases including murder of an IPS officer in 1993, was killed in an exchange of fire with police at Shadnagar on Monday.
Police subsequently arrested several of his associates, and carried out searches at several premises and seized weapons, explosives, gold ornaments and a large number of documents related to land transactions.
Meanwhile, the Cyberabad (East) Police today arrested Mohammad Nawab and Modi Ramesh, two associates of the slain gangster, who were allegedly involved in extortion and threatening people in land disputes.