Indian authorities have arrested a man accused of running a fake embassy from a lavish property near the capital, New Delhi.

Harshvardhan Jain reportedly duped people for money by promising overseas employment, a senior police official with Uttar Pradesh state's special task force said.

Jain, who is 47 years old, introduced himself as an ambassador or an advisor for entities like "Seborga" or "Westarctica," Sushil Ghule said.

Investigators told India Today outlet on Wednesday that Jain would tell unsuspecting people that he could facilitate work or contracts in "friendly" nations because of his diplomatic clout.

These friendly nations he named were micronations, which, in theory, can mean a physical or virtual state designed to resemble a sovereign state.

But these mock states are not recognized by any government in the world, even though several of them have issued their flags and passports.

Police recovered nearly 4.5 million Indian rupees ($52,095) and other foreign currencies in cash after raiding the property.

Fake embassy and cars with fake license plates

Jain ran operations from a rented residential building with luxury cars with fake diplomatic license plates parked outside.

Inside, investigators found doctored photos with world leaders, counterfeit passports and fake seals of India's Foreign Ministry and imaginary nations.

Jain was also suspected of illegal money laundering through shell companies abroad, Ghuli said. He is facing charges of forgery, impersonation and possessing fake documents.

Jain was born into a wealthy industrialist family and studied business in India and London, according to India Today.

In 2011, he was arrested by authorities for possessing an illegal satellite phone, a record that came up in light of the current investigation, according to the report.

Edited by: Elizabeth Schumacher