The slain were identified as Yusuf Ali, 35, son of Keramat Ali, Kader, 17, son of Fakir Ali, and Mansuf Ali, 30, a jetty worker of the Chittagong port also son of Akkel Ali. They all hailed from Charpatharghata under Karnaphuli Police Station in the city.

Navy and police sources said the slain and the injured were pirates carrying looted fuel oil who fired at the law enforcers in pursuit.

Several drums of fuel oil worth about Tk 1 lakh were seized from the spot, they said.

On the other hand, local people identified the slain and the injured as innocent boatmen and blamed the navy men for firing indiscriminately at them causing casualties.

Local boatmen enforced an indefinite strike in protest at the incident suspending ferry services between Charpatharghata and Bridgeghat in the city demanding a fair investigation of the incident and exemplary punishment for the responsible.

According to navy and police sources, a four-member patrol team of Bangladesh Navy, acting on a tip-off, intercepted and chased two engine-boats allegedly carrying smuggled fuel oil on the Karnaphuli near Chittagong port channel around midnight.

The alleged criminals navigated the engine-boats into Noya-hatkhola canal at Charpatharghata on the bank of the Karnaphuli and were joined by over fifty of their accomplices of the same syndicate to attack the navy patrol team, they said.

They attacked the navy men with lethal weapons forcing the latter to retaliate with gun fires resulting in a clash in which the three were shot dead and one was injured with a bullet wound, said the sources.

Local people of Charpa-tharghata, however, alleged that the navy men opened indiscriminate fire and the 'onslaught' continued for about an hour.

In the firing by the navy men Yusuf, Kader and Mansuf Ali were killed on the spot while Sekander, 50, was injured with a bullet on the right leg, they said.

They further alleged that actual criminals, whom they identified as smugglers, managed to flee while the firing killed some innocent villagers who came out of their houses either out of fear or curiosity.

Of the killed and injured, Mansuf Ali was a jetty worker of Chittagong port and the rest were boatmen. Sekander, who is now undergoing treatment at Chitta-gong Medical College Hospital, told journalists that he came outside his house to urinate when a bullet hit him.

Local lawmaker Sarwar Jamal Nizam MP while visiting the spot along with local UP Chairman Salahuddin Bakul yesterday morning said he knew the victims as innocent and none of them could be pirates.

Meanwhile, Charpatharghata-Bridgeghata Sampan Chalak (boatmen) Kalyan Samity enforced an indefinite strike protesting the incident.

They demanded withdrawal of the label "pirates" from the records of the slain and the injured persons, a fair investigation of the incident and measures against the responsible.

Navy Petty Officer Mokhlesur Rahman filed a case with Karnaphuli Police Station in connection with the 'clash' and recovery of fuel oil, the police said.

A tense situation is prevailing in Charpatharghata.