A 28-year-old Kashmiri shawl trader was assaulted and looted here on Friday. The accused has been arrested, the police said on Sunday.

Shakur Ahmed Shah was attacked on Friday near the railway track in the Park Circus area and ₹1.95 lakh were snatched from him. A man named Hasimuddin has been arrested, the police said, adding that they were trying to recover the money.

The victim alleged that while he was walking “some people asked him if he was a Kashmiri and getting an affirmation they started beating him up”. Later, he was rescued by his friends.

“I was also stabbed,” Mr. Shah said.

However, police said “no such statement was made by the victim” in his complaint.