The bomb, believed to be about 40 years old and used by the Army during regular firing exercise, was spotted by construction labourers at Lahavit market in Deolali Camp yesterday during the construction of a building, local police station in charge Rajesh Akhade said.
The labourers informed their contractor who in-turn alerted the Deolali police.
Subsequently, police rushed to the spot and seized the bomb and handed it over to the Army personnel, he said.
Earlier also such bombs were found in Deolali, which has had a firing range for the Army since British rule in India.