It appears, while the petitioner was working as Technical Work Inspector with the respondent Corporation, on the basis of complaints received against him alleging that he demanded bribe from the beneficiaries of Indiramma Scheme for supplying steel and cement to them, the 3rd respondent –District Collector/Executive Director, A.P. State Housing Corporation Limited, Kadapa, suspended the petitioner from service vide proceedings dated 09.05.2006, and thereafter the petitioner was issued with a show cause notice dated 24.08.2006. Pursuant thereto, the petitioner submitted his explanation on 29.08.2006 to the 3rd respondent, denying the allegations leveled against him, and also submitted another explanation to the 3rd respondent, as directed by the Deputy Executive Engineer. However, having not satisfied with the said explanations, the 3rd respondent, by impugned proceedings dated 08.09.2006, imposed the punishment of stoppage of two annual grade increments with cumulative effect and ordered to treat the suspension period of the petitioner as leave for which he was eligible.