He was caught reciving Rs 7,000 as a bribe through a private assistant in his office in Adarsh Nagar area of the city today afternoon.
According to ACB officials, Tax Collector B Nageswara Rao demanded Rs 10,000 from P Murali of Ravindranagar in the city for doing an official favour of fixing a lesser house tax.
After negotiations, the tax collector agreed to do the work for Rs 7,000.
Both Nageswara Rao and Poli Naidu have been arrested.
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