Staff Correspondent

MANGALORE: The Lokayukta police on Monday arrested an official of the Department of Industries on charges of demanding bribe to clear a proposal for subsidy to an industrialist here. Based on a complaint from Ganesh Rao, former corporator, a team of Lokayukta police laid a trap for the official and caught him red handed.

The accused, S. Rajaiah, deputy director at District Industries Centre, Yeyyadi allegedly demanded Rs. 2,000 from Mr. Rao to forward a proposal for the sanction of a subsidy worth Rs. 48,000 from the department. This subsidy amount was to be paid to Mr. Rao in connection with his industry.

The official reportedly agreed for Rs. 1,000, after much persuasion, to clear the proposal and forward it to higher authorities.