Dharmpuri area BEO Neeta Shrivastava and the teacher Shyamlal Kewat were arrested for taking bribe from Pannalal Mukati, a retired teacher, said the Lokayukta deputy superintendent of police V S Parihar.
Pannalal, who retired in December 2014, had 240 days of accumulated leave which he could encash, and Shrivastava demanded a bribe for approving the payment Rs 3.50 lakh due to him.
"We caught Kewat taking Rs 25,000 on behalf of the EBO. Later we arrested Shrivastava too," the DSP added.