Police also arrested the owner of the factory, Qurban Soheb Shaikh (38) who allegedly employed the children-- aged between 8 and 16--in the zari factory situated in Madeena Apartments of Khardi, said sub-inspector M D Gadade of Shil-Daighar police station.
Most of the children belonged to Bihar, police said, adding, the accused also hails from the state.
The children were sent to Bhiwandi remand home.
Shaikh has been booked under section 374 (unlawful compulsory labour) of IPC, besides sections 23 and 26 of Juvenile Justice Act and under Child Labour Prohibition and Regulation Act 1986.
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