while loop error. (command not found)

can any1 please tell me what is problem with following code:

i=1;
cat test| while read CMD;
do
Var$i=$CMD;                  or     Var$i=$(echo $CMD) ;
let i++ 
done

I keep getting error :

line 4: Var1=sometext: command not found

that's a useless use of cat. and for your problem use following

i=1;
while read CMD
do
eval Var$i=$CMD
let i++ 
done < test

That's a useless use of eval, and eval is dangerous -- someone could feed text like `rm -Rf ~/` into the program, and it would do it.

Just do this instead:

i=1
while read var$i
do
        let i++
done <inputfile