The trio, identified as Sanjay Sharma, Hira Lal and Sanjay Prasad, were arrested from Karol Bagh area for manufacturing and selling duplicate garments of well-known brand 'US Polo Association'.
Counterfeit goods, including 996 fake collar stickers along with 1,043 shirts, 27 duplicate T-shirts, 2,552 duplicate tags, worth Rs 10 lakh were seized, they said.
Acting on a tip-off, the police team yesterday raided a shop, owned by Sharma, in Karol Bagh and Lal's store.
Police also arrested their associate Prasad and after interrogation it was found by the accused persons had started manufacturing and selling fake branded garments since past six months.
An FIR under various sections of Copyright Act was registered at Police Station Prasad Nagar.