Milly murder: Scrap dealer bailed

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The 40-year-old man from west London was arrested on Monday after voluntarily attending a police station and was questioned by Surrey Police officers during the day.

He is understood to be Nirmal Gharu, who was interviewed by police on August 4 over the same matter.

Amanda Dowler, who was known as Milly, disappeared while walking home from school in Walton-on-Thames, Surrey, on March 21 2002.

Six months later her remains were found 30 miles away by mushroom pickers in Yateley Heath, Hampshire. Her death remains one of Britain's most notorious unsolved crimes.

A Surrey Police spokeswoman said the man had been released on bail until December.

He was being quizzed about a red Daewoo Nexia car which officers believe could have been used to transport 13-year-old Milly's body.

Earlier this month, divers searched Bedford Lake, near London's Heathrow Airport, for the car but said they found "nothing of any relevance".

Investigators received new information suggesting the car had been dumped there but said after the search they had no plans to return to the lake. Despite extensive searches over the past four years there are still no signs of the car.

Prime suspect Levi Bellfield has admitted driving it but claims he was carrying building materials.