Vigilance and Anti-Corruption wing police said Inspector Devadoss had demanded Rs 10,000 from a Tamil Maanila Congress functionary Babu Anthony for closing a case.
Following his complaint, police set a trap and asked Babu Anthony to handover the "chemical smeared currency" to the Inspector and caught him red-handed while receiving the money in a room at a private Lodge here where he was staying, police said.
He has been remanded to judicial custody.
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