Police on Tuesday claimed to have busted a gang, which used to extort money from businessmen by posing themselves as Maoists in Kaoida area of Sundargarh district.
After getting a complaint from a local businessman, a police team caught the extortionists red-handed on Saturday while they were accepting the money, Inspector-in-charge Pradeep Kumar Sahu said.
Ringleader Akhaya Patra was arrested on the spot, while four others managed to flee, he said.
The accused hail from Keonjhar district and had been collecting extortion money for the past several years.
Patra confessed to police that he has so far extorted more than Rs 15 lakhs from businessmen, police said.