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The council said the exchange would impact on the amenities in the area around the police station - where there is a theatre, youth club and an education centre used by vulnerable young people on the edge of a busy car park.
BBC: Colwyn Bay town centre
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Correspondents say the news of the deal was greeted with cheers by hundreds of his supporters who have been maintaining a vigil outside the police station in Delhi where he is being held.
BBC: India corruption: Anna Hazare accepts release offer
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He has been taken to a police station in the West Midlands where he is being questioned on suspicion of murder.
BBC: Birmingham deaths: Man arrested on suspicion of murder
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At a news conference in the capital late Friday, the Delhi Police announced two officials from the Gandhi Nagar station in east Delhi, the station where the case is being investigated, had been suspended on grounds of negligence.
WSJ: Rape Suspect Arrested in Delhi