Tahir alias Saurabh Chaudhary and Rahees were arrested from Shahid Park in Shalimar Garden area, Superintendent of Police Salman Taj Patil said.
The two have confessed to wearing police uniforms and extorting Rs 94,000 from a man after threatening him to implicate in a false criminal case, police said.
A swift car, a pair of hand cuffs, fake identity cards and police uniforms have been seized from them, said the officer.