Five men have been released on bail after police seized a car and handgun in Ilford town centre on Monday night.
Police were called to Thompson Close just before 6pm on Monday following reports of a group males in possession of a firearm.
Five men aged between 17 and 29 were taken to an East London police station. They have been released on police bail until mid-August while enquiries continue.
It is not yet known if the firearm is genuine and there has been no suggestion that shots were fired.
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