One person was arrested during the raid at the factory in Shahpur under Chainpur police station, Sub-Divisional Magistrate, Arun Kumar Ekka said.
The raid was conducted on the basis of a complaint lodged by the management of a reputed detergent brand recently.
A large quantity of raw materials, machineries and wrappers of various brands were seized from the factory.
Ekka said the godown of the illegal company was also sealed.