Acting on a tip off, the police raided the house of Md Salam and busted the factory, Mufassil police station's Officer In-Charge Bhai Bharat said.
A pistol, one ammunition, three semi-processed pistols and a haul of materials used for processing weapons were seized from the spot, he said.
Bharat said that Salam has been arrested for running illicit minigun factory.
The accused was jailed on similar charges earlier too, he said.