The fake police station, run out of a hotel, was set up in the Indian state of Bihar just 500 metres away from a real police station, NDTV reports.

Local people who came to the station to report crimes or apply for jobs were extorted for money which was pocketed by the gang.

The scam was uncovered after a real police officer saw some of the fake officers patrolling with what appeared to be home-made weapons.

Six people have been arrested, but the ringleader is believed to be at large.