"We clarify that the WB Police has been trying to mislead Kamatapuri people by blaming us... They have been trying to defame our organisation," KLO general secretary Kailash Koch said in a statement.
"So, we warn the WB Police not to play hide and seek with innocent people using the name of our organisation," the statement said.
The explosion is believed to have been the handiwork of the KLO which observed martyrs' day yesterday coinciding with the blast.
Meanwhile, an abandoned bag near a level crossing in the Jalpaiguri town sparked off panic among the residents.
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Senior district police officers said the bag was found lying unclaimed in an alley close to the level crossing gate number three in the town this evening.
Local residents informed the police soon and the area was cordoned off, officers at the Kotwali Police Station said, adding, the bomb squad had been alerted.
Meanwhile, state North Bengal Development minister Gautam Deb and state panchayat minister Subrata Mukherjee today visited the blast site and met the family members of the victims. They also held a meeting with senior district police and administrative officials at the Circuit House here.
Later talking to reporters, Mukherjee said, "Some persons have already been arrested in connection, but we are not giving any further details due to security reasons and for the sake of the investigation.
The injured will be treated free of cost at the hospital. We are not blaming anyone at this moment. The administration and the police are on high alert and we will combat the challenge," he said.