The raid was conducted around 10.30 pm after the police received a tip-off.
According to sources, they sent in a decoy as a customer to confirm the activities at Affluent Salon and Spa at Santoshi Mata Co-Operative Housing Society, Mumbai Central.
After a confirmation, a team led by Inspector Anil Naik (SS Branch) and PSI Sudhakar Deshmukh (Nagpada police) raided the parlour and arrested five women and recovered Rs 3,500.
"We have arrested five girls under the Prevention of Immoral Trafficking Act. They will be produced in the metropolitan magistrate court tomorrow," said Anil Naik, Inspector, SS Branch.
However, the owner of the parlour was missing. Investigations revealed that the owner, a woman, had obtained a licence to run a beauty parlour but operated a sex racket through it.
The police said that once the girls identified 'special customers' they offered 'special services', which were different type of massages.