The accused has been identified as Rahul Kumar, a resident of west Delhi's Mohan Garden area, police said today.
Kumar was earlier involved in a women trafficking racket and later he formed the extortion gang, Joint Commissioner of Police (Crime Branch) Ravindra Yadav said.
Based on a tip-off, the police arrested Rahul on Tuesday.
Rahul is a native of Jharkhand and had come to Delhi for employment. Later, he formed the racket and used a few women he knew to trap businessmen, realtors, doctors and engineers.
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When the man turned suspicious about their intent, they allegedly thrashed him. The man later approached police and reported the matter, police said.
On February 23, a woman approached the police and told them that she was held captive by Rahul who also forced her to have sex with several men in a day.
A hunt was subsequently launched to nab him, the police officer said.