"KK Awasthi was held when he was taking the bribe from Dipti Shrivatri, a member of OBC, near Rani Awanti Bai chowk," said Lokayukta Deputy Superintendent of Police, Prabhat Shukla.
He said the officer was seeking illegal gratification to clear and forward her loan proposal to a bank.
Shrivatri had sought a loan of Rs 5 lakh to set up a shop close to the city vegetable market from the Backward Classes department.
Awasthi has been booked under Prevention of Corruption Act, the DSP said, adding that further investigations are on.
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