According to SSP Shalabh Mathur, acting on a tip-off, the police raided the factory that was being operated in Telephone colony during which a person was arrested and several illegal arms and ammunition recovered.
So far, one Shalabh Mathur, has been arrested for his alleged involvement in the trade while three others have fled, police said.
The accused, who has a history of crime records, told police that the weapons that were being manufactured were to be sold for the panchayat elections, they said, adding that the person is being interrogated.