Raymond Davis, a CIA contract employee involved in the double murder of two Pakistani youths, was released under mysterious circumstances by a sessions court in Lahore on Wednesday.

“The families of the victims appeared before the court in Kot Lakhpat jail and agreed to forgive Davis after receiving the blood money,” Punjab law minister Rana Sanaullah confirmed to reporters in Lahore. He said the court freed Davis in accordance with the Diyat law promulgated by former military ruler General Zia-ul-Haq in 1979.

Rana could not mention clearly about Davis’ whereabouts but media reports said he was quietly flown from Lahore airport to some foreign destination. The law minister simply said: “Having been released, he must have left for home.”

Counsel for families of the victims Asad Maqbool Butt said he was not allowed to appear before the court and was kept out in a sort of detention for four hours. He said 18 members of the families of the victims were apparently lifted by security agencies from their homes on Tuesday night and secretly brought to the court on Wednesday.

“Each heir to the victims was paid compensation before the court and then they confirmed having forgiven the accused,” private TV channel Geo said, quoting prosecution lawyer Imran.

Senior analysts converged on the view that all concerned, including the federal government, the security agencies and the Punjab government, played their role to facilitate the settlement in a case that had put relations between Pakistan and United States under severe strain. The case had also frayed tempers in Pakistan with religious groups and politicians vowing public protests if Davis was released.

English daily Dawn had reported on Tuesday that the recent tensions between the ISI and the CIA had been defused amid intense behind-the-scene parleys, particularly after a way out was found for tackling the Davis case.

Earlier in the morning, the authorities deliberately leaked stories from Lakhpat jail to Pakistani and foreign media that the sessions judge, Lahore, had indicted Raymond Davis for double murder. It was done to deflect attention from the proceedings surrounding the release of Davis, senior analyst Shafat Mahmood said.

Davis had shot dead two Pakistani youths on a busy crossing in Lahore in January, claiming that they had tried to block his car with the intent to rob or kidnap him. Shomaila Fahim, widow of one of the victims, committed suicide as she said that she did not expect justice in the case.

On another charge for possession of illicit arms, the court sentenced Davis to the period he had spent under detention and a fine of Rs 30,000, which was immediately paid. Another case against some employees of the US Consulate in Lahore who had run over a passerby while trying to rescue Davis after the murder, has almost fizzled out after refusal by the Americans to hand them over.

Punjab chief minister Shahbaz Sharif had earlier added to the mystery by suddenly leaving for London on Tuesday night for a one-day visit to see his brother Nawaz Sharif, who had earlier gone there along with his wife for her medical check-up.

Media reports said an American twin-engine jet aircraft carrying 12 passengers flew from Lahore airport on Wednesday afternoon for Bagram airbase in Afghanistan.

There were conflicting reports regarding the compensation amount paid to the families of the victims. One report said Rs 20 million were paid besides a promise for the American green card.