Gangulappa was trapped while he allegedly received Rs 10,000 from Manjula and Lakshmi, residents of C V Raman Nagar.
They had voluntarily given one-and-a-half acre land in Banaswadi to BDA and in turn, the BDA had to give them two incentive sites.
Gangulappa had allegedly demanded Rs 20,000 as bribe to issue allotment letters.
He had already collected first installment of Rs 10,000 on March 4.
Four usurers held
The City Market police arrested four persons for allegedly extending loans at an exorbitant interest rate and recovered Rs 1.13 lakh, four cellphones and other records pertaining to cash transactions. The suspects were Anjaneya Murthy (47), Brahmendra (33), Krishnamurthy (20) and Mansur Khan (30).
According to the police, the suspects used to extend loan to flower vendors, fruit vendors, petty shop owners and other small-time businessmen. They would also take the help of goons to threaten and recover the loans whenever customers failed to pay on time. They are in the business for the last six years.
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