The arrested accused have been identified as executive engineer V.L. Bhaskar, at the CPWD, Zonal Office in Tamil Nadu's Madurai, P.N. Sivasankar Raja, proprietor of Brahma Developers, and P.Narayanan, representing S.K. Electricals, Chennai.
A CBI spokesperson said that the agency registered a case against the engineer and others including two private persons on the allegations that Bhaskar conspired with the said contractors for receipt of illegal gratification of Rs 50,000 for clearing the bills of a private company and another Rs 1 lakh for the purpose of refunding GST.
"During the trap proceedings, an amount of Rs 70,000 was recovered from the public servant, which he had demanded and accepted from the said contractors," he said.
The official said that searches were conducted at the premises of Bhaskar at Madurai which led to recovery of cash of Rs 1.85 lakh said to be kept in different covers and allegedly received by him from various other contractors.
All three were produced before the Special Judge for CBI Cases at Madurai and sent to judicial custody for 14 days.