The Central Bureau of Investigation has arrested ward-1 Income Tax officer P. Venkateswara Rao who allegedly demanded a bribe from financier M. Srinivasa Reddy of Rayavaram mandal to reduce his Income Tax dues on September 16.

The Central Bureau of Investigation had then registered a case against Venkateswara Rao for allegedly demanding a bribe of `80 lakh from the complainant Srinivasa Reddy. The Central Bureau of Investigation officials had laid a trap for S. Lakshmana Rao, the maternal uncle of the income tax officer and mediator in the bribe case, while he was accepting a `15 lakh bribe from the complainant.

The CBI said that the income tax officer fell ill and was being treated at a hospital. But he absconded later. Sources said that the official was admitted to the government hospital here where the doctors certified that he was alright. Today, CBI officials took the official into custody.

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