A police team intercepted the truck near Kunzar, 35 kms from here, on Srinagar-Gulmarg road when it was on way to dump the load at a flour mill.
During preliminary investigations it was revealed that the driver had to unload the wheat at Food Corporation of India store in Srinagar but was directed to unload the wheat bags at a flour Mill.
"After scrutinizing the papers produced by driver, it surfaced that the wheat bags were supposed to be unloaded at FCI Srinagar, but the FCI and Consumer Affairs and Public Distribution (CAPD) authorities in connivance with owner of the flour mill had diverted the food grains illegally with intention to embezzle the same," the spokesman said.
He said the truck has been seized and a case has been registered.