The arrested accused included a Punjab home guard jawan identified as Bir Singh, Charanjit Kaur and Baljinder Kaur and Gurjinder Singh, while the fifth member of the gang is absconding, police said.
Acting on a tip-off, police raided the house of the home guard jawan and arrested the accused.
The accused Bir Singh in connivance with women members of the gang used to take innocent persons to his house for sexual intercourse, police said.
Later, they all used to extort money from the persons trapped by the gang members, they said.
