KARACHI, Feb 19: The Enquiries and Anti-Corruption Establishment (E&ACE) arrested on Thursday the former Nazim of Orangi Town, Shahid Alam who is better known as Guddu Bihari , for his alleged involvement in misappropriation of Rs10 million meant for development work.

The ex-Nazim, who belonged to the Pakistan People's Party, was arrested from his Clifton residence following the registration of two corruption cases (FIR Nos 5/04 and 6/04) in the E&ACE.

"We registered the cases and picked him up on Thursday morning as he was wanted in two cases," Arab Mehar, the Deputy Director of E&ACE Karachi, told Dawn.

He said Mr Alam had allegedly misappropriated funds in collusion with the officials of the Orangi Town administration. The investigating officer of the two cases, Malik Rahim Bux, said the former Nazim had floated tenders for the construction of a mini-stadium and other development work.

"We have so far found Rs10 million that had been misappropriated in the amount released for the development work. We have also included the names of the-then town municipal officer and other administrative officials along with the private contractor of Shadab construction."

Mr Bux said ten people, including Mr Alam, were named in the two corruption cases and "we are looking for others who would soon be arrested." Mr Alam was removed from the post of a Town Nazim through a notification issued by the Sindh Local Government after he had been accused of various graft charges.

He had been on an anticipatory bail from the district and sessions court West, since Aug 20, 2003, in a murder case. He was earlier granted the interim pre-arrest bail on July 8, 2003, in the same case in a sum of Rs100,000.

He had been described as an absconder in the case following the statement of the victim's wife before a judicial magistrate on June 12. The woman had lodged on June 3 an FIR against four attackers, who had beaten up her husband, Nazeer Hussain, to death in Orangi Town.

The wife of the deceased Nazeer, reported to the police on June 2 that her husband was at the site of his under-construction house on June 1 when accused Ameerullah Khan alias Moosa turned up there and asked that the construction work be stopped.

On June 2, Moosa along with his three accomplices again appeared at the site, and beat Nazeer up, injuring him seriously. He was later admitted to the Jinnah Postgraduate Medical Centre, where he died. Mr Alam was described as an absconding accused in an interim charge-sheet of the case, submitted in the court on June 15.