NEW DELHI: The CBI has recovered Rs 2.61 crore cash from the premises of a senior Railways official arrested for graft, officials said on Wednesday.

Principal Chief Material Officer of the North Eastern Railway, Gorakhpur, K C Joshi was arrested on Tuesday evening while allegedly receiving Rs 3 lakh as a bribe from a contractor, they said.

The contractor had approached the CBI with a complaint that his firm provides products and services to the North Eastern Railways and had received a contract for the supply of three trucks on a contractual basis, for which he was supposed to get Rs 80,000 per truck per month.

He alleged that Joshi was seeking Rs 7 lakh as a bribe by threatening to get his firm de-registered from the Government e-Marketplace (GEM) website and cancel his contract, they said.

The Central Bureau of Investigation verified the allegation and laid a trap where the exchange of the part payment of the bribe was planned, they said.

Joshi was nabbed in the process, following which the searches were conducted at his residential premises in Gorakhpur and Noida, where Rs 2.61 crore in cash was seized, they said.