Ajeet and Sanjay were arrested yesterday near New Delhi Railway Station after one of the persons, who was cheated, created a ruckus there.
The accused persons had collected lakhs of rupees from gullible people by charging them between Rs 8 to 10 lakhs for providing visa and work permit, depending on the country.
Five Indian and Nepali passports have been recovered from their possession.
Karandeep Chawla told police that he gave Rs 3 lakh each to Sanjay and Ajeet for arranging visa to go to Australia but they failed to provide it as promised.
On his insistance, they gave a photocopy of a visa and work permit but on verification with Australian Embassy, the same was found to be forged, a senior police official said.
During interrogation, Sanjay said he used to operate a travel agency from Janak Puri and later shifted to Munirka about two years ago.
"While operating the agency, he came in contact with Ajeet and got lured into this cheating racket," he said.