The accused identified as Jagrup Singh was nabbed yesterday with a stolen vehicle when a police 'naka' was laid at the Moga bypass.
However, the other gang members, including Jagsir Singh, Jagdeep Singh and Tejinder Singh managed to escape, said SSP Surjit Singh Grewal today.
The gang was operating in different states for the last several years, he said.
The accused had confessed that the gang used to prepare fake documents of stolen vehicles and used to sell in different states, the SSP.