Police said a VHP leader, who allegedly brought the weapons from Mandsaur town, managed to escape when police raided the place.
"We raided the place on a tip-off that the consignment of swords, along with sharpening equipment, has landed in the houses," SP (city) Pankaj Dixit told reporters.
A total of 50 swords and a machine were recovered from the spot, he said.
The arrested persons are identified as Mahesh Gurjar and Meghraj Lohar, Dixit said, adding that an office-bearer of VHP, Nirmaldev Narela, managed to escape.
A manhunt has been launched to nab the absconding persons and a case under Arms Act was registered against them.
Dixit said a number of cases were registered against Narela in Neemuch district.
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