The Melbourne Court decision to grant bail to the three LTTE suspects arrested in Australia has been challenged by the Federal Government of Australia.

The Australian Government had taken this step against the decision of a Melbourne Supreme court to grant bail to Aruran Vinayagamoorthy (32) of Mt. Waverley, and Sivarajah Yathavan (36) of Vermont and the bail out given to Arumugam Rajeevan at a lower court.

Attorney-General Philip Ruddock has asked prosecutors to consider appealing against Vinayagamoorthy and Yathavan, who were arrested under the charges of being members of a terror organization (LTTE), providing support or resources to a terrorist organization and making funds available to the same.

Arumugam Rajeevan was later brought down from Sydney to Melbourne to face terrorist charges. Justice Bongiorno had said that the accused men were entitled to the presumption of innocence.

But Attorney-General Ruddock said later: "I have asked the Director of Public Prosecutions to examine whether the decision should be appealed."

Vinayagamoorthy and Yathavan, who were interviewed by Australian Federal Police in November 2005, have been in custody since May this year. The three accused men each provided a $100,000 surety and must report to police daily and not leave Australia.

Vinayagamoorthy and Yathavan are due to face the Melbourne Magistrates' Court for a committal mention on July 24. Rajeevan will also face the same court for a committal mention on August 23.