The Chandigarh police have busted a gang of cheaters who were selling fake heroin in and around the city and charging lakhs of rupees for the plain white powder, a police spokesman said.

The police have arrested eight people, all residents of Chandigarh and around and recovered the fake heroin from them.

Following a tip-off that certain people were selling expensive drugs in the city, the police constituted a team which sent a decoy customer to the gang. The deal for 500 grams of heroin was struck for Rs.24 lakh.