The duo Abrar Ahmed Mohamad Isque Shaikh (25) and Atta-ur-Rehman Abdul Razak Pathan (35) are the driver and cleaner of the oil tanker carrying the oil from BPCL, Sewri, in Mumbai to a Coca Cola plant based at Kudus Wada in the district, police said.
They were arrested last night by a Crime Branch team on a tip-off.
Police found that 5000 KL out of 18000 KL of oil was syphoned off allegedly by the duo and transported to Taloja in Navi Mumbai in a small tanker.
The furnace oil is used by industries for heating up boiler and generation of steam.
A police team is dispatched to Taloja to trace other members of the racket.
Both Shaikh and Pathan were booked under relevant sections of IPC and produced in a local court, which remanded them in police custody till February 11.
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