Ramesh D Patel, 54, had made a demand of Rs 18,000 from a contractor for passing bills of Rs 9 lakh for road work.
After deliberations, the contractor agreed to give a sum of Rs 16,000 to the officer for the clearance.
The aggrieved contractor lodged a complaint with the ACB Thane unit officials following which a trap was laid in the PWD office at Murbad.
The engineer was nabbed while accepting the money, ACB SP Sandeep Karnik said in a release.
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