Another Income Tax inspector, also suspected to be involved in bribery, is yet to be arrested, ACB said in a statement.
The bureau swung into action after a complainant called on a toll free number (1064) of the agency, following which a trap was laid.
"The accused inspectors had conducted a search at the office of the complainant with respect to TDS and demanded Rs 60,000, out of which Rs 15,000 was paid. When a middleman was accepting the remaining bribe money, he was arrested along with inspector Renu Abraham," the ACB said.
The arrests were made from the office of Upadhyay who had called the complainant there to accept Rs 45,000.
"The operation was carried out by an ACB team led by police inspector H P Doshi of ACB Rajkot, along with the staff of ACB Rajkot and Jamnagar," the release stated.
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