The villagers have become panicked as rumour spread that police would again launch a massive arrest in connection with a case filed last year folowing attack on police and alleged arms snatching.

As per the policy, 30 per cent of the houses will be allotted to Bangalees and 70 per cent to Biharis, sources said. This is opposed by the Bangalees, who are claiming more.

Formal announcement of allotments was deferred twice, fearing agitation by Bangalees.

The latest date, fixed on December 28, was cancelled. State Minister for Education and Minister-in-Charge for Nilphamari ANM Ehsanul Haq Milon was supposed to inaugurate the allotment.

The earlier schedule was on March 14 last year, when it was announced that Prime Minster Khaleda Zia would formally inaugurate the allotment. But it was cancelled 48 hours before the programme.

Visiting some villages around the housing project, this correspondent found dissatisfaction among Bangalees people on the allotment policy.

They demanded that all the houses be allotted to poor Bangalees because the Biharis worked against the independence and killed people.

On March 21 last year, local Bangalees clashed with police as they batones a demonstration protesting government allotment policy. At least 60 people including 11 policemen and the UNO of Syedpur were injured.

After that police filed a case accusing 3000 people for attacking police and snatching arms.

The Uttara Housing Project was constructed at a acost of Tk four crore near the Saidpur town to accomodate 1000 families.