Srinagar’s former Deputy Mayor Sheikh Imran has been arrested for “illegal appropriation of subsidy,” the Jammu and Kashmir Anti-Corruption Bureau (ACB) said on Friday.
“Case FIR 3/2019 was registered by ACB against Shiekh Imran Director M/S Kehwa Square Pvt. Ltd. Bohri Kadal Srinagar, officers of J&K Bank and other Govt officials, for illegal appropriation of subsidy with inflated project cost for establishment of CA storage at Lassipora, Pulwama,” the ACB said in a statement.
Earlier this year, the ACB had registered a case against Imran and other officials.
Imran was removed as deputy mayor of Srinagar Municipal Corporation after a no-confidence motion against him was carried in the corporation on Thursday. Imran, who is also the director of Kehwa Group of Companies, had set up a cold storage unit under M/S Kehwa Square Private Limited at Lassipora.
The ACB said that Kehwa Group had got its loan of Rs 138 crore with J&K Bank “restructured for merely an amount of Rs 78 crores under a well knit conspiracy by Sheikh Imran and partners of M/S Kehwa Square Pvt. Ltd along-with JK Bank Officials”.
The agency said that investigation revealed that funds were diverted. “Large amount of loan was diverted which was meant for construction of CA store. The case is under investigation with ACB to unearth further details of bank fraud,” the statement said, adding that Imran has been taken into custody by ACB Srinagar for further questioning.