General manager M K Goyal and assistant general manager B P Sharma had demanded a bribe of Rs 1.90 lakh from a contractor firm for clearing bills of Rs 17 lakh, said Gwalior Lokayukta SP Amit Singh.
Goyal was caught accepting Rs 1.5 lakh and Sharma Rs 40,000, he said.
Satyendra Singh Kushwaha, the complainant, had submitted a recording of his conversation with the two officers, in which the demand for the bribe was made. Following this, the Lokayukta sleuths laid a trap and caught the duo.
A case under Prevention of Corruption Act has been registered, the SP said.