The report has not been confirmed by the Serbian Ministry of the Interior or the War Crimes Prosecutor's Office.
According to media reports, the seven persons appear to be former volunteers and members of Serb paramilitary forces who are suspected of murdering 22 persons and maltreating a large number of civilians.
The War Crimes Prosecutor's Office in Belgrade launched a preliminary investigation into the case in October 2005.
Drago Hedl of the Split-based Feral Tribune weekly, who has extensively reported on war crimes committed in the Slavonia region, said in an interview with Belgrade radio B92 on Monday that he had been told by residents of Lovas that Serb paramilitary units known as "Beli orlovi (The White Eagles)" and "Dusan Silni" had been active in that area during the war.
"The news of the arrests will certainly be received with pleasure in Croatia, because it's a fact that no one has been held to account for the crime in Lovas, and it's a very cruel crime. Besides, trials are currently under way in Croatia for war crimes committed by Croats against Serbs, so it's normal that every such information from Serbia is welcome," Hedl said.