Forest Gate Two awarded £60,000 damages from police

Following six months of negotiations, Mohammed Abdul Kahar, 25, and Abul Koyair, 23, will get the payout as a 'goodwill gesture'.

Last night it emerged that although the legal advice to the Yard was that they could fight the action, senior officers have decided to settle to avoid sparking 'community' tensions.

Payouts: Abul Koyair (left) and Mohammed Abdul Kahar

A leaked document seen by the Mail admits that police feared a backlash if the case went to court.

Mr Kahar and Mr Koyair, who have made a series of financial demands against the Metropolitan Police, had been seeking a total of £125,000 damages for assault and negligence.

Mr Kahar's claim was for £85,000, while his brother was demanding £40,000. The brothers were arrested in June 2006 by armed officers looking for a chemical device at their terrace home in Forest Gate, East London.

In the commotion of the £2.2million police operation, which involved more than 250 officers, Mr Kahar was shot in the shoulder.

But no device was found and the men were released without charge after spending a week in custody.

Their home had been ripped apart during the raid.

For two months they and their relatives stayed - at taxpayers' expense - in a series of luxury hotels. The total bill for hotel and living expenses while their house, in Lansdown Road, was being repaired came to £90,500. But their demands did not end there.

Through their lawyers, they made a number of other claims against the Met, including the cost of putting the family cat in boarding kennels.

Sources revealed they also asked the police to pay the mortgage interest on their home, as well as the bill for installation of a burglar alarm.

They claimed that their clothes were 'contaminated' by police searching their home. For this, they demanded £200 each to replace them. Most of the family's financial demands were rejected by Metropolitan Police lawyers.

But now, following protracted discussions, the Met has agreed to pay more than £60,000 in damages to the brothers. They will also compensate four close relatives and at least two neighbours inconvenienced by the anti-terror raid.

Sources said the deal with the brothers is due to be rubber-stamped in the next two weeks. Scotland Yard said that because of a confidentiality agreement, it could not comment on negotiations with Mr Kahar and Mr Koyair.

It confirmed the Met had reached an agreement with the former occupants of the neighbouring house.

Last year a report by the Independent Police Complaints Commission largely cleared police of blame despite their 'very aggressive tactics'.

A neighbour of the brothers confirmed the pair still live at the Forest Gate home, the front of which appears newly decorated and features double-glazing inlaid with gold-edged diamond shapes.

Forest Gate Two: By Numbers

• £2,211,600 was the total bill for the ill-fated anti-terror raid, excluding damages
• £156,900 was spent on equipment for the raid, such as chemical and biological suits and thermal imaging equipment
• £1,843,400 was paid in salaries and overtime to officers involved in the operation
• £120,800 was the cost of restoring the houses, catering costs and erecting barriers for public safety