A seven-member gang that hitched rides in cars before killing the driver and stealing the vehicle has been arrested.

The gang was nabbed yesterday and police said they had also recovered valuables worth 12 lakh, including Rs 8 lakh in cash, three machetes and six mobile phones from them.

In October 2011, the gang allegedly murdered car driver Vinod Kumar by strangulating him and threw his body into a river near Avalahalli dam in Bagalur on the city outskirts, a police statement said.

The stolen car was later seized in Andhra Pradesh when it was being used for illegal transport of liquor, it said. In another instance, the gang had allegedly strangulated to death another car driver and threw the body in an isolated forest area near Bommanahalli, police said.

The accused also allegedly robbed members of the public at knife point in places such as Bangalore city, Mandya, Malavalli and K M Doddi, the statement said. Several cases of robbery, theft and threat have been registered against the gang in various police stations in the city, police said.