A prominent business owner has lodged a police report disputing the "terrorist" classification for the Liberation Tigers of Tamil Eelam (LTTE).

P Thiagarajan, better known as Oms Thiagarajan (photo), claimed that while the LTTE is blacklisted under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (Amla), the group itself is not classified as a terrorist organisation in Malaysia.

"As such, an individual can only be charged over ties to LTTE if they make contributions to that group which has not been active since 2009," he said at a press conference in Kuala Lumpur last night.

The press conference was held in response to last week's Kuala Lumpur High Court's decision to reject a bail application by Gadek assemblyperson G Saminathan in relation to his LTTE terrorism case.

Saminathan was among the 12 people arrested in a crackdown over alleged LTTE links last year.

Among those present last night were the family members of the 12, Sabai assemblyperson D Kamache, Suaram executive direct Sevan Doraisamy, and lawyer Saraswathy Kandasamy.

Besides disputing LTTE's status as a terrorist organisation in Malaysia, Thiagarajan also questioned why police took action against the 12, but not against the Tamil Forum Malaysia, which channelled funds to Sri Lankan Tamils.

Thiagarajan said the Sri Lankan government had noted links between the Tamil Forum and the LTTE.

It was previously reported that the former prime minister Najib Abdul Razak's administration, through MIC, had donated US$1 million (RM4 million) to the Tamil Forum for aid work in Sri Lanka.

Meanwhile, Saraswathy said they are seeking an audience with Prime Minister Dr Mahathir Mohamad to present reported evidence that police allegedly abused their power in arresting the 12 people over LTTE links.