"A fake tour operators' racket has been busted and three persons arrested here in this connection," a police spokesman said.
The racket came to light during investigation of a case registered on October 26 last year, he said.
The complaint, on the basis of which the case was registered, alleged some tour operators had cheated tourists by offering them cheaper packages, the spokesman said.
"It came to surface that some unknown persons have established fake tour and travel agencies under the name of Junaid Holidays and Trip to Kashmir and are duping gullible tourists," he said.
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During investigations, it was revealed some persons had launched fake agencies on internet and were using websites to attract tourists, he said.
"They cheated the people who intend to visit Kashmir by offering them cheaper packages and used different cell numbers and bank account numbers," the spokesman said.
The probe by the Tourist Police led to the arrest of three persons running the fake agencies.