Police said the gang took advantage of raids being carried out at ashrams of godmen by the crime branch to commit the crime.
The gang even allegedly threatened the 'godman', who is called Kali Baba by the people, saying there were several complaints against him before the crime branch.
They also asked him to show his property list and other documents. When the 'godman' pleaded his innocence, they demanded Rs 2 lakh to withdraw the 'cases' against him, police said.
"We have registered a case based on the FIR lodged by Kali Baba and have started investigation," said inspector-in charge, B N Pur police station, A K Mishra.
Kali Baba has been worshipping goddess Kali in his home for past several years and local people throng there for the ritual.