The gang was busted after a complaint by a cab driver, who was robbed of Rs 13,500 on knife point at Patchkoot in Vilgam area, a police spokesman said.
"Soon after the receipt of the complaint, police registered a case and started investigations during which many suspects were detained for questioning," he said, adding the police finally zeroed in on four persons involved in the extortion.
Three accused, including two brothers of Patchkoot, were arrested while efforts was on to nab the forth accused who is absconding.