The racket came to light during admissions for degree classes at a college in Jeypore, when the authorities found certificates of at least four students to be fake, police said.
"On September 13, the college authorities lodged a complaint. Based on it we initiated an inquiry and raids were conducted at several places," said Inspector in charge of Jeypore Town police station, Tapan Rath.
While four persons were arrested yesterday from Cuttack, the remaining gang members were nabbed from Jeypore, he added.
"After obtaining orders from the clients here, the gang members used to supply the data to their partners in Cuttack and fake certificates were prepared. Subsequently, the fake documents were supplied to Koraput," he said.
"We have seized 41 seals of various educational institutional and universities," he added. Also, police seized a computer, a printer, a scanner, forged certificates and monograms of various universities.