MOSCOW, April 6 - RAPSI. An Indian national has been detained on suspicion of defrauding Moscow government of over $3.4 million, RIA Novosti reports on Friday.

According to the police the suspect was a member of a group of Indians and Russians engaged in illegal activities.

They have registered more than 300 entities and took part in Moscow land and property auctions. They secured their success through auction rigging by overrating the rent.

This made their rivals give up the bidding and let the group's entities win. Subsequently the suspects subleased the property in breach of lease agreements, a source told RIA Novosti.

The source added that the total damage caused to Moscow budget amounted to over 100 million rubles ($3.4 million).

The detainee has been charged with "infliction of material damage by deceit or abuse of confidence" punishable by up to five years in jail. The court has ruled to arrest the suspect.

Investigators are now searching for his accomplices.