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The 10 people were arrested on Monday during a raid at a hotel on Kufri-Chail road, about 40 kilometres from Shimla. Of the seven women, four are from Punjab and three from Himachal. They are in the age group of 25-30 years.
The police was investigating possible inter-state links of the racket, police sources said. The police said their investigation suggested the women were called as “bar dancers” to a party organised by a cell- phone company at the hotel, but they were in fact part of a flesh trade racket.
The raid was conducted after the Dhalli police station received a complaint about loud music being played at the hotel.