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Four people, including a couple, were arrested in this connection, said the police.
The place was raided following a tip-off. The four were produced before the local court and remanded, they said.
The key accused in the case was earlier running a similar racket at nearby Kapikad and Pilar and one of the accused used to send young girls to the clients. Some of the girls who were in the house during the raid have been rescued, the police said.