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Srinagar, Apr 21 (UNI) Continuing with its sustained drive against corrupt officials, the Jammu and Kashmir Vigilance Organisation has arrested a store keeper of the Social Welfare Department in connection with the Rs 1.06 crore purchase scam, sources said today.

Mohammad Ali Bhat, in-charge central stores of the Social Welfare Department, was arrested by the organisation after a nexus between him and his Director G N Bodha came to light.

The sources said the Director had placed a supply order of steel trunks, seed bins, buckets and jute matting to a firm, Indian Steel Works, in 2004.

They said the proprietor of the firm, Zahoor Ahmad Wani, manipulated the supply order in collusion with Bodha through SICOP in the name of three Small Scale Industrial (SSI) units - Rafiq Metals, New Steel Works and Swan Woolen Mills.

The sources said Wani opened bank accounts in his name and received crores of rupees without the knowledge of the SSI units with the help of Bodha and Bhat.

Wani supplied inferior and under specification goods to the department on highly exorbitant rates which were accepted by Bhat, causing huge loss to the state exchequer.

While the supply order was for 50,000 mt of jute matting of four ft width, only 37,000 mt of three ft width was supplied, though full payment had been released.

Besides Bodha and Bhat, some SICOP officials were also involved in the scandal, the sources said, adding they had passed the order after receiving the kickbacks.

More arrests were expected in the case, they said.

UNI AG AK DS1340