The gang was said to have been motivated by a social media video promoting a false claim about the value of human testicles.
The 17-year-old victim, named only as Rehan, was lured to a secluded area where he was stabbed to death by the gang.
Police in India said his testicles were kept packed in ice while they tried to find a buyer on the black market prepared to pay a huge sum.
Cops probing the sick killing have arrested prime suspect—20-year-old business student Zoheb Khan—and alleged accomplice Aamir Qureshi, 18, and detained three minors.
Investigators allege Khan recruited the group and convinced them that testicles could fetch about 12 million Indian rupees (around £92,465) on the black market in the Gulf.
They claim Khan posed as a doctor to convince his associates he knew how to remove the organs, even going as far as buying a white apron, stethoscope, and thermometer online and using them while training the group.
Rehan, a street vendor, was said to have been lured to his murder site by two youths who approached him at this stall on August 6 and offered 100 rupees (around 77p) to help them with an arranged fight.
Ayush Gupta, the deputy commissioner of police in Bhopal, said four of the accused participated in the murder while Khan guided them on a video call.
When the gang failed to sell the testicles, Khan is said to have ordered the group to dispose of the organs in separate lakes.
Police recovered Rehan’s body from Lower Lake near Dhobi Ghat on August 10. They identified him from a tattoo five days after his worried mom had reported him missing.
