The five arrested include two boxers, a wrestler, a woman and a farmer, police said.
They had allegedly waylaid one Joginder Singh in Narela on September 1 after one of them posing as policeman stopped his vehicle for checking and robbed him of money by forcibly taking him to a building in a secluded place.
Police said they had also forcibly took photographs of him with a woman in a compromising position and later abandoned him at a lonely place.
Greed, however, got better of the gang and they allegedly demanded Rs four lakh from Singh on September 14. They threatened him of making the photographs public if he did not pay them.
"On September 15, a police party went to Auchandi Border with currency of Rs four lakh. At around 10:30 pm, an SUV approached the complainant and snatched the cash bag and fled. Another car was following the SUV," Additional Deputy Commissioner of Police (Outer) M A Rizvi said.
"Both the vehicles were intercepted by police after a chase. Three persons including a teenager were apprehended. Their interrogation led to the arrest of the woman," Rizvi said.