Sex cult leader Chen Keyong even persuaded some women to bring teenage girls to his training courses, Shanghai Daily on Monday quoted Xiamen police as saying.
Police acted on a tip-off that 54-year-old lived with some of his women followers and held group sex with them.
The women followers had given up their careers and even family life to follow Chen's "green land health community".
The followers paid Chen for training courses. A two-day training course cost 2,500 yuan ($368) while a session of 21 days was priced at 18,000 yuan.
The training sessions were to advocate free sex or group sex plus other meditation and wild dancing, police said.
Chen claimed that he was a disciple of well-known Indian cult leader Osho or Bhagwan Shree Rajneesh.