The racket was unearthed when two persons from Kolkata were being packed off to Delhi without being paid the amount they were promised in lieu of one kidney each, Dehradun SSP Nivedita Kukreti said.
The racket was being run at Named Gangotri Charitable Hospital.
A middleman from Mumbai, Javed, who had negotiated the deal with them was subsequently arrested from the forests surrounding Lal Tappad between Nepali Farm and Bhaniyawala area of Rishikesh where the hospital was situated, she said.
A doctor involved in the racket, Amit Rawat, and Rajiv Chaudhry, who ran the hospital after taking it on a lease from Arun Pandey of Allahabad, were on the run, she said.
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The two people whose kidneys were removed were Krishna Das and Sheikh Taj Ali.
Two other persons--Sushma from Kolkata and Mauji Bhai from Gujarat--were waiting at the hospital for their kidneys to be removed in return for money.
However, police came to know about the racket before they could be operated upon, the SSP said.