SRINAGAR: The Anti-Corruption Bureau (ACB) on Friday arrested former Srinagar Deputy Mayor Sheikh Imran in a multi-crore Jammu and Kashmir Bank loan fraud case.
The agency took Imran into custody for questioning in connection with the illegal appropriation of the subsidy given to his company, Kehwa Square Pvt Ltd for setting up of a Controlled Atmosphere (CA) store, said the agency.
Imran was on Monday removed from Deputy Mayor post following a no-confidence motion moved against him by corporators of the Srinagar Municipal Corporation.
A case was registered by the ACB against Imran, the Director of Srinagar-based Kehwa Square, some officers of Jammu and Kashmir Bank and other government officials for alleged illegal appropriation of the subsidy with an inflated project cost for establishment of CA storage at Lassipora in Pulwama.
Kehwa Group, subsequently, got their loan of Rs 138 crore with J&K Bank restructured for merely an amount of Rs 78 crores under a well knit conspiracy by Imran and partners of Kehwa Square Pvt along with J&K Bank officials, the agency said.
The ACB investigation so far has revealed that large amount of the loan which was meant for construction of CA store was diverted.
"The case is under investigation with ACB to unearth further details of bank fraud and Imran has been taken into custody for further questioning," said the agency.