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A dozen police cars and about 20 policemen sporting balaclavas blocked the road leading to his Bukit Segambut home at about 1pm and stopped his car 800m from his house.
His lawyer, Mr Sankara Nair, was quoted on the Malaysiakini website describing the police swoop: 'I was in the car with him when he was arrested. We were surrounded. Their exact words were: 'You are under arrest'.'
Datuk Seri Anwar, 60, was not handcuffed, but he was bundled into a white four-wheel-drive vehicle with dark-tinted windows and taken to police headquarters, escorted by a convoy of patrol cars.
His lawyers were not allowed to accompany him, but it is believed that one of them was allowed to be with him later.
The opposition leader was arrested while returning home from the administrative capital of Putrajaya after spending the morning at the Anti-Corruption Agency headquarters.
He had been questioned about his allegations that the police chief and Attorney-General had fabricated evidence in his 1999 trial on sodomy charges. His conviction then was later overturned.
Yesterday's drama was an uncanny repeat of 1998 when Mr Anwar was nabbed.
One of his lawyers, Mr William Leong, said he believed Mr Anwar would be charged with sodomising his former aide, Mr Saiful Bukhari Azlan, 23.
'I would expect them to charge him, because they have gone to extraordinary lengths,' said Mr Leong.
Mr Anwar was arrested an hour ahead of the 2pm deadline for him to see the police to give a statement in the investigation into Mr Saiful's report that he had been sexually attacked.
Federal Criminal Investigation Department director Bakri Zinin told The Star newspaper that the police decided to act because they did not think he would show up, as he had failed to keep an appointment on Monday.
He said Mr Anwar should have gone directly from the anti-graft agency to the police HQ.
'However, we were informed that after he left the ACA headquarters in Putrajaya, he had changed his route and was heading back to his house in Segambut,' he said. 'He was arrested as we had reason to believe he was not going to show up.'
Mr Nair, however, said that Mr Anwar's team had told the police several minutes before the arrest that he would report on time.
'If Anwar had not shown up at 2pm, I would understand the need to arrest. The police have breached the trust and confidence we once had,' he said.
'There was a lot of fear and intimidation. It was absolutely unnecessary.'
CID chief Bakri said Mr Anwar was allowed to meet his lawyer and family, and gave an assurance that he would be safe in custody.
In 1998, Mr Anwar was badly beaten by then police chief Rahim Noor, emerging with a black eye.
His wife Wan Azizah Ismail said: 'It's a feeling of deja vu with what happened 10 years ago.'
Unlike that time, when street demonstrations broke out, the reaction was muted yesterday as opposition leaders urged supporters to stay calm.
Last night Mr Anwar was taken to the Kuala Lumpur Hospital for a DNA sample to be taken, but one of his lawyers said he had been advised against providing a sample.
Home Minister Syed Hamid Albar said late last night that the opposition leader was likely to spend the night in detention.
He said that Mr Anwar faced a serious allegation and the police had to investigate fully.
'We will make sure that no one is above the law,' he said.
