They said the matter came to light when the 26-year-old woman went to a hospital there yesterday, to 'question' some persons.
At the hospital, she displayed her fake identity card, which bore a forged state government emblem, and said she wanted to question four people injured in clashes between neighbours over a right to a pathway, police said, adding, she also reportedly threatened some doctors.
However hospital staff grew suspicious over her behaviour and informed police, who later rushed to the spot and questioned her. She then confessed that she had been posing as a fake collector for some time and had cheated a number of people.
The woman was arrested and a case has been lodged against her under various sections of the Indian Penal Code. Police said her husband was running a browsing centre in the town and had defaulted in repaying bank loans.