GUWAHATI, India (Reuters) - A top rebel leader from Indias northeast surrendered Friday, police said, but peace in the troubled region remained elusive with the groups powerful military wing chief still holding out. Police said Arabinda Rajkhowa, chief of the banned United Liberation Front of Asom (ULFA), was arrested after he turned himself in near Indias border with Bangladesh. The ULFA is the regions biggest insurgent group. He surrendered along with his wife and two children, an intelligence officer, who is not authorized to speak to the media, told Reuters. While Rajkhowa, seen as a moderate leader, was said to be willing to hold peace talks with New Delhi, the groups military commander, Paresh Barua, has always rejected such an offer. Barua said Thursday he would not negotiate anything short of sovereignty, reacting to comments this week by Indian Home Minister Palaniappan Chidambaram that he hoped the group would drop independence demands and hold talks. Given the rift between the two leaders, analysts say, any move by Rajkhowa now to initiate peace talks could spark renewed violence in the region. Violence will continue in the state as long as Paresh Barua is out of the peace process. He will try to prove his presence and strength, said Harekrishna Deka, a security analyst and former Assam police chief. Though the ULFAs military strength has waned, it still remains a potent force and has even stepped up attacks in recent weeks. At least six people were killed and 40 wounded in two bomb blasts in Assam last month. Rajkhowa, 53, whose real name is Rajib Rajkonwar, had been in hiding in Bhutan, Bangladesh and Myanmar and had even traveled to Pakistan and other Southeast Asian countries on fake passports, police said. Indian media reported that he was caught by Bangladesh police and quietly handed over to India because there was no formal extradition treaty between the two countries. Dhaka denied this. The group accuses New Delhi of plundering the states rich mineral and forest resources and giving nothing in return.