by Jay Deshmukh

TEHRAN - An Iranian group that had planned to organise a rally on Saturday backed down after authorities warned of consequences if they went ahead in defiance of the supreme leader's call for a halt to protest.

The reformist Combatant Clerics Assembly said 'permission was asked to hold a rally, but since it has not been issued, there will be no rally held.'

Only minutes earlier, the interior ministry said no rally anywhere in the country was authorised and warned that 'those who violate this will be confronted according to the law.'

Another organiser of the planned rally, supporters of defeated candidate Mehdi Karroubi, have not yet announced if they will demonstrate or not.

Police said the organisers of any future rallies would be arrested, with the police chief saying firm action would be taken against any demonstration.

Witnesses had reported late on Friday that uniformed and helmeted members of the hardline Basij militia had been deployed in Tehran streets, carrying clubs and some of them Kalashnikov rifles.

The militiamen had reportedly withdrawn from their positions on Saturday morning, but the situation remained tense. An aide to Karroubi had told AFP early on Saturday that a rally would be held in Tehran at 4:00 pm (1130 GMT).

That came despite supreme leader Ayatollah Ali Khamenei on Friday demanding an end to marches and warning that candidates would be held responsible for any violence.