Vinayak Fadte, who had recently won panchayat elections from Old Goa village, was arrested by police and a country-made pistol and a few live rounds were recovered from him last night, a police spokesman said.
Besides him, Akhilesh Gupta (23) from Sivan in Bihar, who allegedly used to procure firearms from his native place to Goa, and his local associates Taufiq Nathur and Riaz Sheikh were also arrested.
Three pistols were seized from them, he said, adding that investigations are on to reveal if there were more people involved in the racket.
It is being verified whether illegally procured firearms were used in any criminal activity in the state.