Murthy had conducted an inspection of a company K M Plastics on March 1, 2017 during which he had flagged several irregularities, the agency said.
He had allegedly demanded Rs 10 lakh as illegal gratification from its owner Jagdish Prasad to favour the company in his report and cover up the irregularities, the CBI has alleged in its FIR.
While the first instalment of Rs six lakh was delivered to Murthy, the second instalment of Rs four lakh was being "delivered today afternoon" when the CBI team carried out a surprise raid and arrested Murthy, the agency said in a statement.
"Searches were conducted at the official and residential premises of the accused which led to recovery of Rs 5.6 lakh (approx.) along with several other incriminating documents," CBI Spokesperson R K Gaur said here.
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