City Police Chief Commissioner Amar Singh Ishar Singh said police rounded up several cabs ferrying 14 disabled beggars in Petaling Street, the Sun Daily reported.
The gang was run by a Chinese national, aided by an agent and five taxi drivers.
The beggars are in their 20s and 50s, the news portal reported.
Amar Singh said a police team began surveillance at a night market in KL city centre after receiving a tip-off that crippled people were being forced to beg at morning markets and busy streets.
The 44-year-old mastermind was nabbed at a budget hotel yesterday, he told reporters.
The agent and taxi drivers were picked up when they were on their way to send the beggars to work at morning markets in Puchong Jaya, Kinrara, Alam Damai, Taman Midah, Pandamaran in Klang and Sg Pelek in Sepang, the portal said.
Amar Singh said the disabled were told to raise at least RM700 a day, with half going to the syndicate members.
The victims could keep the remaining half to pay for their food, transport and shelter.
Police seized several passports, speakers, musical instruments, cash and five record books showing where the beggars had been sent to.
The case is being investigated under Section 12 and Section 44 of the Anti-Trafficking in Persons and Anti Smuggling of Migrants Act 2007.