The police on Saturday arrested five men and three women from Urban Estate area of the city after they were found in a compromising situation.
The police have booked all accused under the Immoral Trafficking (Prevention) Act.
The accused have been identified as Parveen Kumar of Jawahar Nagar, Manjit and Deepak Kumar of Malli village, Rajesh of Khokrakot locality and Pardeep of Gandhi market.
Police received a tip-off that a prostitution racket was being run from a house in Urban Estate, following which they put up a barricade in the area.
All accused were produced in court and sent to judicial custody, police spokesperson Ved Parkash Nain said.