Diwakar Agrawal, a stone trader and a BJP leader, had applied for a licence to store minerals at Bhounti in Picchore tehsil of Shivpuri district.
Additional collector Zaheeruddin Sheikh allegedly demanded a bribe of Rs 30,000 through a clerk in his office, Gopal Rathore, for issuing the license.
Agrawal complained to the Lokayukta superintendent of police Amit Singh. The subsequent conversation between Rathore and Agrawal was recorded and a trap was laid, said the Lokayukta inspector R B Sharma.
The Lokayukta officials who were waiting outside then moved in and seized the bribe money from them.
The two were arrested and released on bail on the spot.
A case under the Prevention of Corruption Act and section 120B of IPC (criminal conspiracy) was filed against them. Further probe was on.
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