Two men arrested after west Sydney police raids target alleged extortion racket

Two people have been arrested after police raids on a range of west Sydney homes this afternoon targeted an alleged extortion racket.

A Punchbowl residence was among several addresses searched by armed officers, as well as homes in Newtown, Greenacre and Bankstown.

Footage showed heavily armed police breaking down the door of one home after demanding the occupants to open the door.

One man was arrested in Newtown's busy King Street, reportedly at gunpoint.

Police said the raids were not related to counter-terrorism or the fatal Parramatta shooting of police employee Curtis Cheng.

This is a breaking news story. More information will be added as it comes to hand.