The arrested were identified as Israr (35), the kingpin, Mehraj (24) and Sajid (21).
The trio were arrested from Bhalswa Dairy at Outer Ring Road Crossing here on Monday by the Crime Branch after it received a tip-off that they would come to the spot to sell three stolen cars, police said.
Four stolen cars have been recovered from their possession, they said.
"The gang used to break electronic codes of the vehicle by changing the Electronic Control Module. They would then sell the cars to a person in western UP, from where they were sent to Nepal or the northeast. A drill machine, ECMs, lock and key sets and other tools to unlock vehicles have been recovered from their possession," said Additional Commissioner of Police (Crime) Ravindra Yadav.