The Australian Attorney General has announced that   he will be taking steps to challenge the Supreme Court decision to release on bail suspects of the Liberation Tigers of Tamil Eelam (LTTE).

The announcement came soon after Supreme Court Justice Bernard Bongiorno granted bail to A. Vinayagamurthi (33) of Mt. Waveryly, Sydney and S. Yathavan (36) of Vermont South of the same city.

The police charged Yathavan and Vinayagamoorthy raised money with a colleague called Jeyakumar to help buy equipment for Tamil Tiger terrorist activities in Sri Lanka.

On May 8 a Melbourne court denied bail to Vinayagamoorthy, 32, of Mt Waverley, and Sivarajah Yatahavan, 36, of Vermont South, who were arrested over terrorism offences.

In a different court house Chief magistrate Ian Gray bailed out Arumugam Rajeevan on the strength of the earlier Supreme Court decision.

He was arrested on July 10 as part of an ongoing investigation by Australian Federal Police (AFP) into terrorism related fraud.

All three men were bailed on their own undertaking with a $100,000 surety each and conditions that included not leaving Australia, daily reporting to police and living at permanent addresses.