The boys allegedly parked the car at Jubilee Hills and raped the girl, police said.
A teenager in Hyderabad who went to a pub for a party was allegedly gang-raped by schoolboys inside a car at an upscale part of town last Saturday.
The accused are Class 11 and 12 students and belong to "politically influential" families, say the police. An MLA's son is believed to be part of the group, but the police say he may not have been involved in the gang-rape.
On Saturday evening, the 17-year-old girl had gone to a pub with a friend, who left early. The teen reportedly befriended a boy and left the club with him and his friends. They had allegedly promised to drop her home.
The group went to a pastry shop before the assault, according to the police.
The five boys allegedly parked the car at Jubilee Hills, which is among the posh neighbourhoods in the city, and took turns raping the girl while the others stood guard outside the car.
The MLA's son whose name has emerged in the case reportedly got off the car before the assault and ran away.
When the girl's father noticed injuries to her neck and asked her about them, she reportedly told him some boys had attacked her after a party at the pub.
The police initially registered a case of "outraging modesty" based on the girl's father's complaint. Later, when she gave a detailed statement, a rape case was filed.
"Her father approached us. According to whatever he told us we filed a case of outraging modesty and under POCSO (Protection of Children from Sexual Offences). He was not sure what happened, the girl was not in a position to reveal anything," police officer Joel Davis told NDTV.
When the girl was sent to women officers, she revealed the true extent of what had happened.
"She could not reveal identity of the accused. She only had one name. Based on footage and technical evidence, we are looking for the suspects," Mr Davis said.
The girl's father said in his complaint: "At about 5.30 pm, she was taken out of the pub by a few guys in a car. Later, they misbehaved with my daughter and assaulted her, she has minor injuries on her neck. Since then, my daughter has been in deep shock and has been unable to disclose what happened exactly," read the complaint.
The police are also investigating how the club gave access to minors.