Police also recovered 10 foreign-made sophisticated pistols and 157 live cartridges from their possession.
The accused were identified as Mohammad Rehan Ansari, 42 and Mohammad Qurban Ansari, 45, both residents of Bulandshahr in Uttar Pradesh, police said.
They were arrested on the intervening night of Wednesday and Thursday from the Indraprastha Park area of south Delhi after a shootout, police said.
"We had an information about both the brothers of being involved in illegal gun trade racket," Deputy Commissioner of Police (Special Cell) P.S. Kushwaha told reporters.
"A secret information was received that both the brothers would come near the Indraprastha Park to deliver the arms to their contacts. Thus a trap was laid for their arrest. But they opened fire when asked to surrender, and were arrested after a shootout," the officer added.
Explaining the modus operandi of the accused, the officer said: "They used to get the guns from Pakistan through their contacts and then smuggle it into India via Nepal."
"The same weapons were then supplied to their contacts in Delhi-National Capital region (NCR)," he added.
"We have recovered 10 foreign made sophisticated pistols and 157 live cartridges," the DCP said. The recovered weapons consisted of five .30 pistols and five .22 bore pistols. Of the five .22 bore pistols four are Walther (made in Germany) and one Sig Sauer (made in US) pistols, police said.
Police also seized 17 mobile phones, one Tata Safari car and a Renault Duster car from their possession.
According to police, the brothers owned a factory in Khurja industrial area of Bulandshahr where electric switches and sockets were manufactured. But they started the business of illegal trade of weapons after being persuaded by a relative to earn huge profits.
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