The scam came to light when shopkeepers grew suspicious about the so-called raids. They informed Ikramul Haq, president of the Industrial Trade Board, about the unusual behaviour of the group.
When the gang attempted another fake raid, alert traders quickly informed the police. At the same time, they managed to catch three of the accused on the spot.
A complaint was later filed at Shadiyabad police station, with traders demanding strict action.
Police investigation underway
Ghazipur City SP Rakesh Mishra confirmed the arrests and said police teams have been formed to catch the mastermind, identified as Sars Kumar Gupta.
The arrested members are being questioned as police try to uncover the full network behind the scam. Gupta, who is believed to be leading the gang, is still on the run.