The six people were collecting hefty sums of money from unsuspecting individuals over false promises of securing them jobs at the Research and Analysis Wing (RAW), according to a police statement.
Those arrested have been identified as Ramananda Nauniya, Santosh Karki, Binod Karki, Padam Bahadur Shrestha, Chitra Bahadur Shrestha and Geeta Maharjan, it said.
Nauniya, the mastermind of the gang, with the help of other accused, used fake letterheads of the Indian Embassy to prepare counterfeit job contracts, the police said.
They would charge interested individuals anywhere between 3 lakh to 5 lakh in Nepalese currency for the job.
"They had also duped millions of rupees from various people. He had asked people to pay him an amount equivalent to four months salary for his services in securing the job," Mr Lohani said.
Police launched an investigation into the matter after more than a dozen victims approached them, alleging fraud. The victims have said that they were promised a job with a monthly salary of 75,000 Nepalese rupees.
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