Update:The suspect in the road rage shooting death of Muslim man has been charged with murder.

An incident that was initially reported as a fatal road rage shooting has shined an even brighter light on potential hate crime legislation in Indiana.

Mustafa Ayoubi, a Carmel native and Indiana University graduate, was killed Saturday. His friends say it was because of his Muslim faith.

Witnesses told investigators that Dustin Passarelli, 33, yelled slurs about Islam just moments before he shot Ayoubi to death in an apartment complex parking lot.

At least two shots struck Ayoubi, 32, in the back, court records said.

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The man yelled: "You are followers of Muhammad," and "Muhammad is a pedophile," Usman Ashraf, a friend of Ayoubi who witnessed the shooting, told IndyStar.

This incident comes as Indiana lawmakers debate a new hate crimes law. Indiana is one of a handful of states without such a law.

Hate crimes law:What we know about the current bill

This shooting has drawn the attention of the Council on American-Islamic Relations, a Washington, D.C.-based Muslim civil rights group that has called for federal law enforcement authorities to take over the case and bring charges against the man accused in Ayoubi's death.

On Thursday, court records show Passarelli was formally charged with murder. He remained held in the Marion County Jail.

The Indianapolis Metropolitan Police Department is still investigating the homicide. Deputy Chief Chris Bailey said he will reach out to the FBI once the investigation is complete.

"We're focused on the homicide investigation," Bailey said. "Once this case is filed, I will personally reach out to my colleague at the FBI. If they are interested in filing anything else, they will have access to the evidence."

Federal authorities could file additional charges related to a civil rights or hate crime charge, Bailey said. They could, with the blessing of Marion County prosecutors, seek to try the case in the federal court where hate crime laws would apply, he said.

Grant Mendenhall, special agent in charge of the FBI in Indianapolis, told IndyStar on Thursday that the FBI is watching the investigation into Ayoubi's death.

“We are keenly aware of that case and are paying attention,” Mendenhall said. “We’re going to evaluate the facts and see where they lead.”

But, for now, Ayoubi's death shines a spotlight on Indiana as an outlier. It is one of just five states that does not have a hate crimes law.

Senators Thursday passed a watered down hate crimes proposal after removing language that would have protected specific characteristics, including religion, gender identity, race and sexual orientation.

Road rage, a hate crime or both?

Passarelli told investigators he was driving south on I-465 on the west side Saturday when another car aggressively "flew up" from behind, according to the preliminary probable cause affidavit filed Sunday in Marion Superior Court.

Passarelli said he heard a bang and believed the other driver struck or threw something at his vehicle. Passarelli, records said, followed the other vehicle off the 38th Street exit, around a restaurant parking lot and into the apartment complex where the shooting took place.

"Mr. Passarelli stated he wanted to get the (information) of the driver in case there was damage," IMPD Detective Brian Lambert wrote in the affidavit.

Ayoubi got out of his car and the men exchanged words.

Ayoubi's friend Ashraf told police Passarelli yelled "go back to your country" and used other ethnic and religious insults, according to the affidavit.

Passarelli told police that Ayoubi called him a "dirty Jew" and punched his driver's side window twice, causing a crack, according to the affidavit.

Ashraf disputed that claim. He said his friend yelled "shut up" but never said anything about religion.

"I don’t think that they knew each other so I don’t know how he would say he’s a Jew," Ashraf told IndyStar.

Passarelli fired his Glock 19 handgun through the window, according to the document, destroying any evidence of a crack that might have been made by a punch.

Ayoubi was unarmed.

A witness told police Ayoubi turned and started to run away when Passarelli shot him, according to the affidavit. Ayoubi was pronounced dead at the scene. The deputy coroner noted at least two gunshot wounds to Ayoubi's back, the document said.

Ayoubi's friends described him as an upbeat and intelligent man with an infectious sense of humor.

“There (wasn't) a moment where Mustafa is with you and anybody’s sad," said Niraj Bhatt, who told IndyStar he'd known Ayoubi for 14 years. "It’s very sad that I won’t see him again. Everyone has to go one day but this is not how somebody has to go. This is the last thing that should happen to you.”

IndyStar reporter Ryan Martin contributed to this story.

Call IndyStar reporter Vic Ryckaert at 317-444-2701. Follow him on Twitter: @VicRyc.