The chairman of the Gorkhaland Territorial Administration (GTA) - the autonomous council governing the north Bengal hills - and 10 others were arrested on Wednesday on charges of cheating and criminal conspiracy, police said.
"GTA chairman Pradip Pradhan and 10 others have been arrested on charges of cheating and criminal conspiracy," Siliguri deputy commissioner of police Shyam Singh said.
According to police, Pradhan who is also a key member of the central committee of the Gorkha Janamukti Morcha (GJM) allegedly defrauded people by passing a brass coin to be a valuable old coin.
Pradhan called his arrest as a political conspiracy.
"It's a conspiracy against me," said Pradhan after his arrest.
The accused will be presented before a court during the day.