The Central Bureau of Investigation (CBI) team on Tuesday arrested Income Tax (IT) inspector B. Ramachandra Rao, working in Vijayawada, and middle man Rajaratnam alias Raju red-handed while accepting ₹70,000 bribe.

The accused IT inspector allegedly demanded ₹5 lakh from the complainant for not taking action against the complaints received and not raiding his mobile phone shop located in Eluru. When the complainant expressed inability to pay ₹5 lakh, the inspector through the middleman agreed for ₹1.20 lakh.

The accused would be produced in the Special Judge Court for CBI Cases, Vijayawada, the CBI said in a release.