Moga SSP Ashish Chaudhary said acting on a secret information that the gang members were planning a major dacoity and snatching vehicles on the link road last night, the police rushed to the military area.
The gang members tried to give a slip to them but the police nabbed four of them on the spot and the other three were arrested during chasing.
Police also recovered two dozen snatched mobile phones from them, he added.
The gang members had been active and operating in the district for past three years.
The arrested were identified as Paramjit Singh, Harpreet Singh, Sukhwinder Singh, Veer Singh, Harwinder Singh, Mandeep Singh and Harpreet Singh -- all are resident of Moga and its adjoining villages.