The gang members used to target gold traders from the district and also those from Kerala and Karnataka by luring them with "precious gemstones" at cheaper rates, Police Commissioner J Purnachandra Rao told reporters today.
They were nabbed from their underground workshop on Kirlamopudi Layout yesterday and 700 fake gems in 10 colours estimated at Rs 1.5 lakh, a gemstone cutter and polisher, a machine and five cellphones were seized from them.