Jammu, March 18: In a move likely to create a controversy, the Jammu and Kashmir Government today reinstated suspended senior IAS officer and Principal Secretary Iqbal Khanday who was allegedly involved in the sex scandal that rocked the Valley last year.

The Cabinet, which met under the chairmanship of Chief Minister Ghulam Nabi Azad at his official residence here, approved reinstatement of Khanday, an official spokesman said here. Khanday, who was arrested and suspended in June last year in connection with his name figuring in the scandal, has been posted as chairman of the Bureau of Public Enterprises.