A teenager arrested over the carjack murder of garage owner Harjinder Singh Bhurji in Clayhall, east London, has been bailed by police.

The 18-year-old, the fifth person to be arrested over the death, has been bailed to a date in October, police said.

Mr Bhurji, 32, was pronounced dead in the early hours of Tuesday morning after he was stabbed in Stoneleigh Road, Clayhall, near St John Vianney Catholic Church.

It is believed Mr Bhurji, of Highbury Gardens, Seven Kings, had been chatting to a female friend in his black Mercedes when a masked man pulled her out and then demanded the keys to the CLK coupe.

He tried to hide them under his seat but the suspect threatened to harm the woman if he did not hand them over.

However, before he had time to retrieve them, he was stabbed and suffered a chest wound.

Despite his injury Mr Bhurji gave the keys to the man who then drove off and the car was found abandoned at 2.45am in Forest Glade, Chingford.

His death was condemned by his family as a “senseless crime”.

Three men, aged 18, 19 and 20, and a 17-year-old boy have all been bailed pending further inquiries in connection with the killing.

Mr Bhurji’s friend was found at the scene uninjured but suffering from shock.