The officer, identified as sub-inspector (SI) B L Jhaad, is posted as in-charge of Rajod police station in Dhar district, sources said.
He was arrested from the police station while accepting the bribe, they said.
According to sources, Jhaad had recently registered a case of manhandling, using abusive language and issuing threats against one Parmanand Maru on the complaint of his relative.
Jhaad had already taken Rs 8,000 from Maru for settling the case.
A case under Prevention of Corruption Act has been registered against Jhaad.