They arrested the gang members following a complaint from a city-based woman running a beauty parlour at Erode.
Police said the complainant, a 35-year-old woman, was approached by one Poongodi, who told her that she had to pay Rs 1.20 crore to the RBI for transferring Rs 40,000 crore from Russia, reportedly obtained after the family sold Iridium.
She promised the complainant half the amount if she helped in advancing some money.
She became suspicious when Poongodi sought another Rs 65 lakh and introduced her to five men.
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She promised to pay the money in Coimbatore and complained to police.
The gang stayed in a hotel in the city awaiting the woman's arrival but were arrested by police around mid-night yesterday.
Besides, Poongodi, her husband Mohankumar, Sathishkumar and John Samipillai of Chennai, Kuppanzraj of Thiruvallur and Devakumar from Vellore were arrested, police said.
Preliminary investigation revealed that the gang had cheated many women to the tune of Rs 50 lakh, they added.