Anil Yadav, the head of the 'armoury' in Bihar and Jharkhand, and arms supplier Prafulla Malakar were arrested form Silodar forests on the border of Hazaribagh's Chouparan and Bihar's Gaya district, Hazaribagh SP Manoj Kaushik said here.
On a tip-off, a special task force first arrested Malakar and seized arms from him and later nabbed Yadav when he arrived at the spot with Rs 8 lakh to purchase the weapons, he said.
"The seizure included a US-made rifle inscribed Colt M-16 and 14 ammunition of 5.56 mm cartridges, used by the US Army," he said.
The Rs 8 lakh rifle could be folded and carried in a specially designed bag, the SP said, adding a 9-mm Italian- made pistol was recovered from Yadav.
A Rs four lakh bullet-proof jacket, manufactured by a company of Manchester in the UK, was also seized, he said.
Malakar informed the interrogators that he had recently supplied four AK-47 rifles, two AK-56 rifles and three other Self Loading Rifles to Yadav, he said.