The arrested persons have been identified as Surendra Nag (20), Subash Harijan (27), Daitary Harijan (26), Suresh Harijan (32) and Suman Kumar Padhi (26).
The police have also seized a Mahindra Scorpio (SUV), cash worth Rs 80, 000 and one pistol with two live bullets from their possession.
The accused persons were later court forwarded, police said.
Sources said five teams were formed comprising policemen of Nabarangpur and Koraput districts and raids were conducted at several places in the last few days to nab the accused.
The police, quoting the complaint, said a local businessman, identified as Sadasiv Sahoo was kidnapped by seven persons while he was coming to Nabarangpur town from Dangarbheja in a two-wheeler. The accused had picked him up in between Sindhiguda and Nandahandi chhak by a Scorpio, police added.
The men, however, released the victim near Jeypore at 7 p.m. on November 12.
Following this, a case has been registered at Nabarangpur police station under section 363/364 (A)/343/34/120(b) of IPC and Section 25/27 of Arms Act.
Meanwhile, raids are being conducted to nab the other accused involved in the crime, police said.