Bhatia, who looked after matters related to Municipal Corporation of Delhi, had allegedly challaned the shop owner in Alaknanda Market during an inspection drive on August 10.
The Special Metropolitan Magistrate, Central Zone, (Littering), MCD had asked the shop owner to appear in court and later he allegedly demanded illegal gratification of Rs 60,000 from the complainant for settling the challan.
"The bribe was reduced to Rs 25,000 during negotiations. CBI laid a trap and the Special Metropolitan Magistrate was caught red handed while demanding and accepting a bribe of Rs 25,000 from the complainant," a CBI spokesperson alleged.