Thiruvananthapuram, Dec 26 (IANS) Kerala Police has stepped up efforts to nab the killers of a diamond merchant linked to an erstwhile royal family in the state, Chief Minister Oomen Chandy said here Wednesday. Harihara Varma reportedly possessed diamonds worth Rs.300 crore.

"The police are doing a good job and hence at the moment there is no need for any concern on that," Chandy told reporters here after the weekly cabinet meeting.

Police teams have been sent to Tamil Nadu to nab the killers, sources said.

Varma, 59, who according to reports was a member of the Mavelikara royal family was Monday afternoon found dead here. Three people had come from Chennai to buy diamonds reportedly worth Rs.300 crore from Varma.

The meeting was fixed at a house of Varma's daughter, where no one lived. During negotiation the three attacked Varma and Haridas, his close associate and applied chloroform on them.

Haridas told police that once he regained consciousness, he found Varma dead and the precious stones worth Rs.300 crore missing. He immediately alerted the police.

The criminals decamped with the precious diamonds and also took away their mobile phones.

Meanwhile, some members attached to the Mavelikara royal family have expressed ignorance on the status of Varma and said he does not belong to the royal family.

Leader of Opposition V.S. Achuthanandan asked the state government to see that a CBI (Central Bureau of Investigation) probe be ordered in the incident and also inquire how come he possessed such diamonds.