Jammu and Kashmir Police on Wednesday arrested five of 20 people accused by a minor of raping her.
"The girl was brought here on Tuesday after she was arrested with a Punjabi youth under suspicious circumstances by Punjab Police in Pathankot.
"She has given names of 20 local people who allegedly raped and later exploited her by pushing her into sex trade," a police official said.
"The girl originally belongs to Akhnoor area of Jammu district. A case has been registered and investigations started," he added.
Police said they were confident they will soon arrest the rest of the men.
While the officials here are tight-lipped about making public the names of the accused, sources said they include several local politicians and businessmen.
A huge sex scandal had rocked Jammu and Kashmir in 2007 in which some top politicians, senior bureaucrats and police officers were arrested.