Hundreds of Indian villagers gathered yesterday to remember the 23-year-old East Lancashire charity worker whose battered body was found under a pile of stones last week.

In ritual prayers, known as puja, the friends of Michael Blakey, of Pike Hill, Burnley, came together to mark his death, which has now been confirmed as murder.

Among the Hindu caste Michael worked with, the tradition is to commemorate the 12th day after death, but close colleague Rachel Owen, 35, said: "It was difficult because we didn't know exactly when he died so we had to assume it was Sunday, November 26."

She said: "There were special prayer songs, silence, reflection and meditation.

"People were passing through the prayer tent all morning to pay their respects to a large picture of Michael placed on a flower garland.

"One of our Norwegian colleagues, Una, sang a Norwegian tribute song."

Meanwhile the police chief in charge of the investigation, Additional Superintendent Santosh Patial, formally confirmed that an investigation into the homicide of Michael Blakey was under way. He said: "We have set up a special team and we are still investigating the matter."

Another police officer from Dharamsala police said: "We have no clue".

But Rachel Owen said that rumours in the town were rife: "Everyone has their own theory about how he died", she said. "The speculation is phenomenal."

She set up Tong-Len UK with Michael in 2005 and in July earlier this year he acted in a role similar to best man, at her marriage to Pawan Bhardwaj, a Tong-Len project worker.

Anna Owen, Rachel's mother, director of Tong-Len UK, said: "I can't imagine anyone that knew Michael wishing him any harm.

"If I had to speculate I would say he was killed by someone he didn't know.

"Or he stepped in to help someone in trouble. Because thats the kind of young man that he was."