The accused were arrested after a raid at a five star hotel near Mumbai airport last night, said police.
Besides, the personal assistant of minister of state for Home, the others arrested include Kishor Mali, who is the kingpin of this racket and two others hailing from Pune and Delhi, said police.
Mali, who hails from Solapur is politically connected, police claimed.
"We have arrested four persons for running a postings and transfers racket concerning senior government officials. It includes PA of former minister of state Home," Sanjay Saxena, Joint Commissioner of Police (Crime) told PTI.
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"We will investigate since how long this racket was operational and if any government officials were cheated by this group," the official added.
The racket came to light after one of the accused approached Deputy Commissioner of Police (DCP) Namdeo Chavan currently posted in Solapur City on the pretext of giving him a lucrative posting, the official said.
They assured him a posting of his choice and demanded an amount in lakhs for the transfer, said the official.
DCP Chavan got suspicious and complained to the Crime Branch of Mumbai Police about it, he said.
After the meeting, the DCP Chavan signalled the crime branch sleuths present in plain clothes in the hotel, who raided the room and nabbed the four accused, he said.
An amount of Rs 6.70 lakh was also recovered from them, said the official.
The accused were sent to police custody till June 7.