The incident was reported from outer Delhi's Baba Haridass Nagar.
A 39-year-old man approached police that he had been honey-trapped.
He told the police that he went to meet a woman, whom he became friends with over a phone conversation, on August 28 at Nangloi Stand in Najafgarh, Deputy Commissioner of Police (Outer) Pankaj Kumar Singh said.
The woman insisted the man to come to her home but he refused. While he was in his car with the woman, two men barged inside and two others parked their motorcycle close to the car, he added.
The victim told them he can't pay such a huge money. They then "forcefully" shot a video of him in a compromising position with the woman who had called him.
They threatened to upload the video on Facebook and circulating it on whatsapp if they did not pay him Rs five lakh in the next five days, the police said.
They also took his ATM card, PAN Card, a gold ring and Rs 85,000 from his car.
On the basis of analysis of the call detail records, the police arrested Sandeep Dalal alias Rinku (36) and two others Adarsh Kumar alias Sunny (32) and a 22-year-old woman, the police said.
The complainant's gold ring was also recovered from the possession of the woman.
Two other accused persons are on the run. The arrested persons revealed that they have honey-trapped three-four others in the same manner but the victims did not approach police fearing social stigma, Kumar said.
Dalal, who is the gang leader, has been previously involved in several criminal cases of extortion and honey-trap in Delhi, said the DCP.
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