The raid took place at the residence of a Nirmal Kaur alias Neehan at Sardar Nagar, following a tip-off late last night, police said.
Apart from Nirmal, the other arrested have been identified as Kulwinder Kaur alias Rosy, Karamjeet Kaur and Satwinder Singh, they said.
Investigations have revealed that a flesh trade racket was operative from the house of Nirmal and the neighbours had made a complaint in this connection, police said.
The accused have been arrested under the Immoral Trafficking Act, they said.