Sadat Ahmed, the main accused, posed as 'India chairman of International Human Rights Organisation', police said.
"He (Sadat) is accused of indulging in extortion, blackmailing, and had carried out several 'settlements'," said Assistant Commissioner of Police N Narasimha Reddy.
Sadat also claimed sometimes that he was a part of an anti-corruption unit, the ACP said, adding he ran his so-called Human Rights Organisation from his residence and collected lakhs of rupees from those who approached him seeking jobs.
He then recruited them as office in-charge and members of the organisation.
Police seized several documents on letterhead of his organisation pertaining to settlement matters, two four-wheelers and two motorbikes from Sadat's house.
Police were looking for another eight persons.