Superintendent of Police Sandeep Karnik said Varsha Giridhar Bhanushali, who represents ward 14-B, had asked for Rs 1.60 lakh from the complainant to arrange permission to increase the height of his shop.
It was agreed that he would pay Rs 50,000 as the first instalment.
After the shopkeeper approached the ACB, a trap was set and Bhanushali was arrested at her residence while accepting Rs 50,000 this evening.
An offence under Prevention of Corruption Act has been registered against the corporator at a police station in Bhayander.
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