Central Bureau of Investigation (CBI) sources said they had received information that a homoeopathy college was being set up in Gujarat for which clearance was needed from CCH, which is a statutory body under the central government.
They said Jha, who was allegedly working as middleman for Dr Singh, demanded Rs 20 lakh for getting the clearance.
Jha, who runs a hotel in Mahipalpur, was caught while taking Rs 20 lakh bribe through hawala channels here.
Both the accused have been produced before the special CBI court at Patiala House here.
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