The incident came to light when a person reported a case of blackmailing and extortion to the police, police said today.
After a telephonic conversation, he had gone for a massage at a parlour for which the deal was fixed for Rs 3000.
He alleged that when he reached the spot, the woman at the parlour demanded Rs 20,000, failing which she would create a scene.
He somehow managed to escape the place.
A few days later he received a call asking him to pay the amount and additional Rs two lakh.
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On this, he paid Rs 2,14,000 more to her.
However two days after, she again demanded Rs 20 lakh and threatened him of dire consequences if he does not do so.
On this, the victim lodged a complaint with the police.
A trap was laid and the woman was apprehended along with an accomplice, police said. Rs 2 lakh were also recovered from them.
Efforts are being made to identify other possible victims of the gang, as it has been learnt that they were involved in extortion activities for quite sometime, police said.