APSI Yadav Bapu Bhagat, 58, attached with Manor police station had demanded the sum from the complainant to release his motorcycle, which was seized by the police in a quarrel case involving him, an ACB official said.
After the complainant approached the Thane unit of ACB, sleuths laid a trap at the Toll Naka police chowkie at Manor and trapped the inspector accepting Rs 500 out of the total money demanded by him.
An offence under various sections of prevention of corruption act was registered against Bhagat after the arrest, the release added.
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