Two persons have been arrested and the Jammu and Kashmir [Images] police is on the lookout for another two involved in a major sex racket that has rocked Srinagar [Images].

A leading national daily carried a front page report alleging that 13 security officials and two leading politicians were also involved in the racket.

Chief Minister Gulam Nabi Azad told newsmen that he had seen the news report and inquired into it and promised action against those who were involved in it.

When contacted on phone K Rajenderan, inspector general of police incharge of Kashmir, said that this was a bid to sensationalise the story.

"It is a two months old story that was carried by the local media. We registered a case against one Shabeena of the downtown area. This was done at the instance of respected local citizens. The matter is under investigation," he said.

The police, however, refused to give the names of those who have been arrested after a 15-year-old girl narrated how she was forcibly filmed in the nude.

She also told the police that 43 girls were involved in this trade.

CDs were made of the girls indulging in sexual acts.

These hapless girls were then supplied to top politicians, police officers, legislators and businessmen.

The CDs came in handy for blackmailing the girls.