Police said that Mohan Lal Sharma, an inspector with the corporation's electricity department, was arrested from his residence at Clerk Colony. He later got bail.
The Lokayukta police had arrested assistant engineer Rajnish Pancholia on February 17 while accepting a bribe of Rs 20,000 from the contractor Rajesh Gawde.
Sharma had allegedly helped Pancholia in the bribe transaction.