Panaji: Goa police on June 2 claimed to have busted a prostitution racket and "rescued" a Telugu-Hindi film actress after raiding a five-star hotel in the city.

The police also arrested a 30-year-old woman who allegedly acted as an agent and provided women as prostitutes to various five-star hotels in the state.

Inspector Siddhanth Shirodkar said the actress and the woman agent had arrived from Mumbai by a flight on Tuesday morning.

"The lady who has been arrested operated from various five-star hotels in the state. The police had sent a decoy customer to trap her and rescue the victim," he said.

Another person involved in the racket managed to slip away during the raid, police said.

The actress, who has played minor roles in some blockbuster Hindi and Telugu films, will be lodged in a state-run protection home for now, police said.