Of the over 100 victims, the accused had even appointed around 20 members as junior investigators and "authorised" them to serve notices to those indulging in copyright and trademark violations, police said.
Based on specific inputs, a police team raided the office of Vigilance and Enforcement for Indian Copyrights (VEIC) at Secunderabad and arrested four fraudsters, a release from the city police said.
The four accused, identified as Ch Rathnakar, Aravind Josef, P Ramesh Reddy and Ch Satyanarayana, had established the bogus office and cheated unemployed youths with the false promise of providing jobs in their organisation as junior investigators, it added.
"So far, the accused have cheated about 100 to 120 candidates of Rs 3 crore," it said.
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According to police, the accused claimed that their establishment has been authenticated by the government to act against piracy and copyrights violations.
"In February this year, they set up the VEIC office claiming that they would raid those establishments, which are found selling or manufacturing duplicate products, and inform the copyright authorities. However, they did not follow the rules and regulations," police said.
"After getting the money, the accused prepared fake appointment letters and handed them over to the candidates. To make them believe, they also conducted a one-month training programme, before appointing them as junior investigators," police said.
As per the instructions from the accused, the candidates had even started serving notices to various establishments, accusing them of violation of copyrights, trademark, piracy, etc, police said.
Police have seized Rs 14.82 lakh in cash, appointment letter pads, empty letter pads, bio-data forms, four walkie talkies, three computers, four cars and other incriminating material from the possession of the accused.