On the basis of a tip off police laid a trap near a college at Hewett Road and arrested the duo, Imran and Narullah, they said.
Thirty-six passports, four medical certificates, eight fake visas and nine visa application forms were recovered from their possession, police said.
During interrogation, they said that they used to promise unsuspecting jobless youths jobs in Gulf countries and through their Mumbai based agents take huge sums from them, police said.
Nurullah , a native of Madhubani district of Bihar who is doing his MA in Arabic from the Lucknow University, told the police that he had cheated several university students hailing from eastern districts of UP and Bihar.
The gang operates from Mumbai , police said, adding that those arrested have so far sent more than 100 people to the Gulf countries.
Detailed investigations were on in connection with the passports and medical certificates recovered from them, police added.