A Central Bureau of Investigation (CBI) official from the agency's Bhopal office said that senior section engineer PD Pushkar was arrested after a trap was laid based on the contractor's complaint.
He was arrested from Shujalpur in the state's Shahjapur district, the official added.
He said that the WR official was demanding a cut from the contractor for work the latter had done earlier with the railways.
The arrested official had also threatened the complainant with further harassment if he was not paid, said the official.
He added that a case had been registered under the Prevention of Corruption Act. The arrested official was produced before the magistrate who sent him to judicial custody, the CBI official said.
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