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Several CDs, video cameras, computers and other electronic equipment were also seized during police raid on Saturday in a building from where an orphanage was being operated by a trust, they said.
The arrested person, identified as managing trustee of the trust, Byomakesh Tripathy, was being interrogated at the Mahila police station here while the rescued girls were shifted to a child helpline centre in the city, they said. Tripathy, however, refuted the allegation.
As seizure of CDs, video cameras and other devices indicated functioning of a sex racket, a team of experts inspected the building and examined the material recovered from the site, the police said.The alleged racket came to light after a staff of the trust reported the matter to the police alleging that she was being harassed frequently.
Most of the girls who were rescued hailed from districts like Nayagarh, Ganjam and Kandhamal, police said.