DSP of ACB K Ramakrishna Prasad told reporters that the accused was caught red-handed while accepting Rs 14,000 from a contractor.
ACB officials also seized total property worth over Rs 90 lakh in cash and gold from his residence and bank locker, the police official said.
The ACB team seized Rs 9.85 lakh in cash from a four-storied residence owned by him in the Shantipuram area, besides one kilogram of gold ornaments as well as gold biscuits and about 5.7 kg of silver articles.
Rao also owns a four-storied residential building, two plots at Bobbili, another plot at Srikakulam, an apartment at Madhurawada, as well as another flat at Abid Nagar in Vizag city, which is registered in the name of his brother, the police official said.