Police in India have arrested a man accused of running a fake embassy from a rented house near New Delhi and duping job seekers out of money with promises of overseas employment.

According to the AFP, Harsh Vardhan Jain, 47, was operating an "illegal West Arctic embassy by renting a house" in Ghaziabad, Uttar Pradesh, which neigbhours the capital, local police said.

Jain, according to police, claimed to be the ambassador of fictional nations "like West Arctica, Saborga, Poulvia, Lodonia".

He allegedly used vehicles with fake diplomatic plates and shared doctored photos of himself with Indian leaders to bolster his claims.

"His main activities involved acting as a broker to secure work in foreign countries for companies and private individuals, as well as operating a hawala (money transfer) racket through shell companies," the police said in a statement following his arrest earlier this week.

He is also accused of money laundering.

During a raid on Jain's property, police said they recovered $53,500 in cash in addition to doctored passports and forged documents bearing stamps of India's foreign ministry.

Westarctica, cited by the police as one of the countries Jain claimed to be representing, is a US-registered nonprofit "dedicated to studying and preserving this vast, magnificent, desolate region" of Western Antarctica.

In a statement, it said it had appointed Jain as its "Honorary Consul to India" after he had made a "generous donation".

"He was never granted the position or authority of ambassador," it added.