The ward officer allegedly demanded the money from the complainant to spare him of action over the construction of some chawls by him in violation of rules, the ACB today said in an official release.
The complainant then approached the Thane unit of ACB which laid a trap and caught the driver yesterday while he was accepting the first instalment of Rs 1 lakh from the complainant on behalf of the ward officer, it said.
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Later, the ward officer was also arrested, it said.
Offences were registered at a local police station against the duo under relevant sections of the Prevention of Corruption Act, 1988, the release added.
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