"Urmila Agrawal had allegedly sought one per cent (of dues) for clearing retirement benefits and other payments amounting to Rs 9.50 lakh from the complainant," said Lokayukta Inspector, Ajay Sankat.
However, she agreed to bring down the amount to Rs 7500 after negotiating with the former teacher.
After the complainant approached police, a trap was laid and she was arrested in the office while taking the money.
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