According to highly-placed sources, the arrests took place after an early morning raid at an apartment, in the posh Kundan Bagh locality.
Sources claim that the actresses Saira Bhanu and Jyoti, along with the 7 other women, apart from some customers, were present inside the apartment, at the time of the raid.
Saira Bhanu has played the lead role in a few Telugu films, while Jyoti has been seen in supporting roles. One of the women is believed to be from Uzbekistan.
Though the police are tightlipped about the identities of the other women and the customers, sources hint at the involvement of some film stars, politicians, and family members of some VIPs, in the racket.
The sex racket has come as yet another shock for the Telugu film industry, which was rocked by a drug scandal on Friday, when police arrested 2 brothers of popular actor Ravi Teja while they were buying drugs from a Nigerian national.
This is not the first time that a Telugu film actress has been arrested in connection with a sex racket. In 2009, a popular actress Seema was arrested during a police raid in Hyderabad's Tarnaka area.
Some of the films Saira Bhanu has acted in are 'Aarojay', '100 Crores' 'Tic, Tic, Tic' and 'Inkosari.'
According to sources, the arrested persons were handed over to Punjagutta police by the Task Force sleuths.
All the arrested accused have been granted bail by a court.
The police has been keeping a close watch on the activities of film personalities, in the wake of the recently-exposed drug racket.
