The youths, all aged around 25 years, were arrested last night from Tukai chawl in Ghodbunder Road area here and 25 guns - one single barrel and the rest double barrel - were recovered from them, DCP V B Chandanshive told reporters.
Acting on a tip off, a team from Kasarwadawali police station raided the chawl premises and arrested the youth, who belong to Poonch district of J-K, he said.
They lived in Thane locality for last couple of months though they have been in Mumbai for last two years.
All of them were produced before a magistrate who remanded them in police custody for five days.
The security service agency where they worked rendered services to nearly 40 housing societies and earlier used to provide armed security to ATM cash vans, police said.
Chandanshive ruled out any possibility of terrorist links with the group and said there was no reason to panic.
It was being ascertained as to who gave them arms in such a large quantity and role of the security agency, he said.
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