Jamshedpur police detained five youths in a raid in Millat Nagar, Jugsalai, over an alleged murder plot.
The raid was conducted near the Golghar primary school following intelligence received on September 17.
A country-made pistol with two live cartridges and other ammunition was recovered.
Police are examining links to earlier firing incidents reported in the area in August.
The allegations remain to be tested in court.
Police said they are now tracing the source of the weapons and the role of any other people in the alleged conspiracy.
The accused are entitled to a fair trial, and the allegations remain to be tested in court.
The Jugsalai area has featured in several police cases involving firearms that have been reported by local media.
Millat Nagar falls in the Jugsalai police station area of East Singhbhum district, of which Jamshedpur is the headquarters city.
According to police, the accused were found gathered near the Golghar primary school with the weapon when the raid was carried out.
Reports said the alleged plan was aimed at members of a rival family, and police are still working to establish the motive behind the alleged plot.
Possession of an unlicensed firearm can attract action under India’s Arms Act, and conspiracy provisions apply where a plan to commit murder is alleged.
Jamshedpur is one of Jharkhand’s best-known industrial cities and is home to the Tata Steel works, which makes law and order there closely watched.
The arrests were made in the Millat Nagar area under the Jugsalai police station limits in Jamshedpur.
Police said they acted on intelligence received on September 17 and carried out a raid near the Golghar primary school.
The raid was conducted on the directions of the Senior Superintendent of Police.
A country-made pistol was recovered from the waist of one of the accused, according to police.
Jamshedpur Police patrolling vehicle (representative image), Wikimedia Commons, CC BY-SA 4.0
