Indian police have arrested a man accused of running a bogus embassy from a rented residential building near Delhi and recovered cars with fake diplomatic plates.

The suspect impersonated an ambassador and allegedly duped people for money by promising overseas employment, said the senior police officer Sushil Ghule of Uttar Pradesh state’s special taskforce in northern India.

According to police, Harshvardhan Jain, 47, claimed to have acted as an adviser or ambassador to entities such as “Seborga” or “Westarctica”.

Police recovered multiple doctored photographs showing Jain with world leaders, and fake seals of India’s foreign ministry and nearly three dozen countries, Ghule said.

Jain was also suspected of money laundering through shell companies abroad, Ghule said. He also faces charges of forgery, impersonation and possessing fake documents.

Police recovered four cars bearing fake diplomatic plates and nearly 4.5m Indian rupees (£38,000) and other foreign currencies in cash from Jain’s rented premises near the capital, which were adorned with international flags of several nations.

Jain or his lawyer could not be immediately reached for comment.