An illegal arms factory was busted and three people were arrested after an encounter here, police said on Sunday.

Acting on a tip-off regarding the manufacturing of illegal weapons, police on Saturday started a search operation in a jungle area in Dhaurera village, Superintendent of Police (city) Martand Prakash Singh said.

The police saw a fire lit at some distance and moments later one of the accused started firing at the team, he said.

In the retaliatory firing, a criminal got bullet injuries on his leg and he was arrested. Subsequently, his two associates were also held after the encounter, he said.

The accused have been identified as Akram, Bhola and Neeraj, police said.

According to the police, arms, ammunition and machines used in making arms have been recovered from the spot.

The injured criminal has been hospitalised, while the two others are being questioned, police said.

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