The accused reportedly sought money from a section of the local sellers and business establishments in the locality.
The sellers and shop owners had lodged a complaint with the Guwahati Municipal Corporation (GMC).
An FIR numbered 1172 was also filed in connection with the case at the Dispur police station.
Based on the complaint, police arrested Abdul Mannar, Uin Singh, Haneef Ali, Khalilullah, Ansarul Alam, Mehboob Sheikh, Mumtaj Alam and Diganta Teron.
All of the accused were produced before the court after which they were sent to police custody.