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The arrested official has been identified as Kantharaj. The Lokayukta police, led by a Deputy Superintendent (DYSP) and Inspector conducted a raid on the department and arrested him while accepting the bribe.
The scheme offers a loan of Rs 1 lakh, out of which Rs 50,000 is provided as a subsidy, and the remaining Rs 50,000 is given as a loan. Kantharaj had demanded Rs 10,000 to sanction the loan.
Further investigations are ongoing.