Passing customers who asked the police about the freedom of the press in Britain and the laws allowing people to sell newspapers on the streets were ordered to "move on".
The Big Issue seller told the police the Muslim girl was involved with a criminal gang illegally selling the magazine on the streets of London.
The girl was in tears and claimed to speak no English as the police tried to question her.
"You do speak English and if you don't answer my questions I will take you to the police station and question you there until you do answer my questions," one of the police officers told the girl.
"These people are doing this all over London," the officer said.
"This money that I have taken off her has been stolen from the official Big Issue seller. She will be in big trouble with her family because she will be going home without any money today."
Asked if this dispute was a civil matter rather than a criminal one the officer replied: "No, this girl is only a child and she is being forced to do this against her will and it is illegal for her to be selling the Big Issue here."
Then he dragged the crying girl into the police car (number plate BX 56WMY) without formally arresting her or reading her rights to her.
The "official" Big Issue seller (badge number 1045) then went back to his pitch outside the entrance to Sainsburys at Ladbroke Grove with a look of quiet satisfaction on his face at his new found power to get the police to remove his young Muslim rival on his unproven accusations.
Passersby who witnessed the confrontation at Sainburys Ladroke Grove said that it looked as if the police had stolen the girl's money and then assaulted her when they dragged her into the police car without the usual legal arrest procedure.
Local residents at Ladbroke Grove said they will tell all the customers at Sainsburys what occurred and attempt to have Big Issue seller number 1045 banned from ever selling the magazine in the area again.
"This sort of thing should not be happening in our country," one said.
BBC London said they would investigate a complaint that young Muslim teenagers were being hounded and arrested by the police on the orders of Big Issue sellers claiming that their earnings were being stolen from them by immigrants and refugees.
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