Assistant police inspector Rajeev Shejwal had demanded Rs three lakh from mandap contractor Kailash Awghade of Panchpakhadi area for not registering a cheating case against him for duping people under the pretext of giving jobs, Thane ACB's official spokesman said.
The bribe amount was later settled at Rs one lakh after a bargain.
On Monday, the contractor complained about the police officer to the Anti-Corruption Bureau following which they laid a trap and caught him at a hotel last evening while he was allegedly accepting the bribe.
Further investigation was on.
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