Two persons involved in the immoral activities have been arrested. Both are hailing from Ganjam district, police sources said.
Acting on a tip-off, police conducted a raid at a house in Saishree Enclave under Laxmisagar police station limits in the city this morning.
Police recovered liquor, cigarettes and some objectionable materials from the spot.
The flat is owned by the mother of one of the rescued girls, police said.
Two girls engaged in flesh trade were rescued by the police during the raid, sources added.
The accused persons were booked under various sections of the Indian Penal Code and Immoral Traffic Prevention Act, police said adding that the duo will be produced in a court later in the day.
The rescued girls will be sent to a short-stay home, police added.