A Maharashtra Industrial Development Corporation (MIDC) official has been arrested for allegedly demanding and accepting a Rs 1 crore bribe for releasing the pending payment of a contractor in Ahmednagar, a senior Anti-Corruption Bureau (ACB) officer said here on Saturday.

The accused, Amit Kishore Gaikwad (32), Assistant Engineer, MIDC (Ahmednagar) had allegedly demanded money from the contractor to sanction the final bill worth Rs 2,66,99,244 for a pipeline work done in Ahmednagar MIDC.