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The arrested official has been identified as Jayant, the Panchayat Development Officer (PDO) of Beloor.
Lokayukta officials said that Jayant had demanded a kickback for releasing funds under the Basava Housing scheme. The beneficiary approached the Lokayukta with her complaint.
Police said they launched an operation and arrested the accused while accepting a bribe of Rs 10,000 at Thekkatte Junction.