A Hyderabad businessman’s dream to invest in rare blue sapphires turned into a costly nightmare after he was duped of Rs 3 crore by fraudsters posing as gemstone dealers, Jammu and Kashmir Police said on Wednesday.

Police helped the businessman recover Rs 62 lakh and have initiated legal proceedings to attach properties of the accused under Section 107 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), under which property can be attached and forfeited to restore the cheated amount to the complainant, according to officials.

Mir Firasath Ali Khan from Hyderabad lodged a complaint at Bahu Fort police station last year, alleging that some people from Jammu tried to sell him fake diamonds in the name of the renowned Kashmir blue sapphires, a police spokesperson said.

An FIR was registered and the probe revealed a larger conspiracy involving Mohammed Rayaz of Rajouri and Mohammed Taj Khan of Surankote in Poonch, both currently living in Jammu, and their associates. They duped the complainant of Rs 3 crore and were attempting to sell him fake Kashmir blue sapphires for a total of Rs 25 crore, the spokesperson said.

He said a police team led by Sub-Divisional Police Officer, Bakshi Nagar, Satish Bhardwaj, successfully recovered Rs 62 lakh and the money was subsequently released by the court in favour of the complainant.

During the investigation, numerous fake Kashmir sapphire necklaces were also recovered.

Police said the investigating officer has identified the property acquired by the accused using the proceeds of the crime and moved court to proceed with the attachment under Section 107 of the BNSS.