Police on Saturday night busted a sex racket operating in Caltex area under the Town Police limits in Dhenkanal district.
The police have arrested one person and detained two women who reportedly hail from Balasore.
A car was also seized from the possession of the arrested person.
However, two other persons said to be the customers managed to flee.
As per reports, the arrested man, who was operating the racket, is a local resident of Dhenkanal town. He has been operating the illicit trade for some years until the police busted it yesterday.
According to police sources, the accused has criminal antecedents as well. The man and his wife were arrested two years back for the same offence and were forwarded to the court.
The police have launched a probe into this connection and are trying to trace the kingpin of the racket.