The Assam police on Sunday arrested one of the key negotiators of the ULFA-nominated People's Consultative Group (PCG), Hiranya Saikia under the provisions of Unlawful Activities Prevention (UAP) Act, serving a lethal blow to the now dormant peace initiative.

A senior Assam police officer said the PCG member was arrested from his Titan watch showroom in Guwahati on the basis of certain disclosure made by a self-styled ULFA sergeant major Ashim Goala who was arrested by the city police Saturday night.

A case (No 18/08) under Sections 10 and 13 of the UAP Act was registered at the Gorchuk Police Station in the city against the PCG member.

Hiranya Saikia became the second PCG member to be arrested by the police for maintaining 'close links' with the banned militant group and for their involvement in unlawful activities. Assam police had earlier arrested chief convener of the PCG and a human rights activist Lachit Bordoloi. He has been in judicial custody for about six months now.

Hiranya Saikia was suspected to be maintaining close contact with the fugitive ULFA commander in chief Paresh Baruah who is believed to be remote-controlling the operations of the outfit from his shelter in Bangladesh

Meanwhile, senior ULFA leader and commander of the outfit's 28th battalion, Mrinal Hazarika was released from Dibrugarh jail in eastern Assam on Saturday evening.