Acting on a tip-off that assistant engineer Rajesh Kumar Gupta had demanded Rs 20,000 from a contractor in lieu of clearing the bill of construction work carried out by him, a trap was laid by the police, Lokayukta Inspector Prabhat Shukla said.
The accused was caught red-handed while taking Rs 20,000 as first instalment from the victim, he said.
A case has been registered under Prevention of Corruption Act, the police officer said, adding further investigation is on.