Deepak Pandurang Chimankare (42), Ulhasnagar Municipal Corporation's (UMC) sectional engineer who has additional charge as assistant municipal commissioner, had allegedly demanded Rs two lakh from Anil Motiram Harchwani for favouring him in the payment of LBT, Thane ACB unit's Additional SP Srinivas Ghatge said.
The accused later settled the deal for Rs one lakh, he added.
Harchwani then lodged a complaint with the ACB which laid a trap and arrested the official while he was accepting the money last night at around 9 PM, he said.
Subsequently, Gaikwad was also nabbed, he said. However, his extent of involvement was not specified by the ACB.
The two accused have been charged under sections 7, 13(1)(d) and 13(2) of Prevention of Corruption Act, the ACB added.