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Police could not yet identify the victims.
Officer-in-Charge of South Surma Police Station Md Monirul Islam said the accident occurred as a Sylhet-bound bus of London Express hit a Dhaka-bound bus of Ena Paribahan, killing four people on the spot and injuring dozens more.
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Three others died after they were taken to a local hospital, the OC said.
Drivers of the two buses are among the deceased, he added.
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