Businessman Ballu Khan, who remains in police custody in relation to his alleged involvement in the assassination plot against the Interim Prime Minister and others, is suing the state for $40 million for assault and wrongful confinement.

At a press conference in the last hour, Khan's lawyer, QC Peter Williams revealed that they withdrew the case in the High court yesterday to pursue the compensation.

Williams says the writ is being served this afternoon to the Interim Prime Minister Commodore Frank Bainimarama, Interim Attorney General Aiyaz Sayed Khiayum and Police Commissioner Commodore Esala Teleni.