Vijayshankar Trivedi, the accused, was caught red- handed at his house while accepting the money, said Superintendent of Police Sunil Tiwari.
Ramprakash Bilgaiya, who works as a peon in the municipality, had complained that Trivedi was stalling his promotion and had demanded Rs 75,000 to clear it.
The police today laid a trap and caught Trivedi while accepting the first instalment of the bribe, the SP said.
A case under the Prevention of Corruption Act has been registered.