The group of 20 girls and five boys was running the racket from Janakpuri District Centre, a popular spot in west Delhi, police said.
The group had formed the "friendship club" to lure unsuspecting people, police said. However, police clarified that it was not a sex racket.
"They had put out advertisements for friendships in newspapers. The girls, all between 19 to 24 years of age, would then entice those who called them into giving money," a Delhi Police official told IANS.
The mastermind, Rajesh Singh, is still untraced and on the run, police said.
"The group also took money on the pretext of giving training in a massage parlour, earning up to Rs.1 lakh per day," the official said.
According to police, the girls were paid a salary and they made around Rs.40,000 per month.
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