K K Dubey (50), posted at Morod village, was caught red-handed while taking the money from a Government Press clerk, Indore Lokayukta Superintendent of Police Dilip Soni said.
Dubey told the clerk that there were several complaints of corruption against him, and the clerk should pay Rs 5 lakh if he wanted to 'close the matter'.
Later Dubey settled for a mere Rs 11,000.
After the clerk informed the Lokayukta police, a trap was laid and Dubey was caught red-handed while taking the money in Mhow Naka area, the SP said.
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