The children, aged between 5 to 10 years, hailed from Gaya and Jehanabad districts of Bihar, police said.
Following the raid on the bangle factory in Naya Kheda at Vidhyadhar Nagar area of the city, police arrested 30-year-old Gaya-resident Raunak, who had lured the children's families with promises of giving them good education and jobs.
The accused has been booked under Sections 344, 374, and 370 (5) of the IPC, besides Sections 75 and 79 of the Juvenile Justice Act.
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