New Delhi, Feb 16, Three persons have been arrested on charge of buying SUVs and other costly cars on loans raised by using fake documents, Delhi Police said on Thursday.

Accused Manoj Makhija, 33, of Rohini, his brother Amit Makhija, 31, and Gaurav Kapoor, 28, of Narela, bought more than 20 costly cars and Sport Utility Vehicles by cheating banks, car showrooms and financial institutions of Rs 2 crore.

"A Tata Zest car without a number plate seized from them was found to have been financed by Amit in the name of Ravi Kumar on forged documents," Joint Commissioner of Police Ravindra Yadav said.

"The accused told police during questioning that 8-10 gang members used to hire accommodation in high-profile residential areas where the owners did not live on the premises. They then forged property documents to raise car loans from nationalised banks," Yadav said.

"After getting possession of new vehicles, the gang sold the same to other people at 40 per cent of the showroom price within a week," he said.