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The bones, which were discovered in Burdwan district, are believed to have been taken from decomposing bodies found in the state's rivers, according to Ajay Sharma, the state's deputy police chief.
"The bones had been cleaned with hydrogen peroxide for sale locally to doctors and medical colleges," he told CNN.
Sharma said the eight men arrested are first time offenders.
That move came on the back of pressure from human rights groups, which deemed the trade unethical, according to Indian media.
Black market for bones
The 1985 ban didn't bring an end to the trade in human corpses however. Instead, a black market began to thrive with West Bengal right at the center, according to a retired senior police officer who didn't want to be identified.
The only legal way to obtain a human skeleton in India today is through hospitals, which use the bones of bodies left unclaimed. However, smugglers often find a way to forge the necessary paperwork, the officer told CNN.