An illegal electricity meter manufacturing unit here was busted and more than 300 equipment were seized, police said on Saturday.

Two persons were arrested from the spot yesterday, police said.

Acting on a tip-off, police, along with Madhya Pradesh State Electricity Board (MPSEB) officials, raided the factory at Bohra Bazaar area, they said.

However, Hasan Ali Shamsuddin, who runs the unit, is absconding and search was on to nab him, police said.

The electricity meters manufactured in this unit were used in power theft given that these illegal equipment ran slow and showed low energy consumption, they said.

These meters were put at some houses and other places after removing the original ones after which the MPSEB carried out investigation and lodged a complaint with us, police said.

After fitting these illegal meters, the accused also used to put a fake seal on them to mislead the MPSEB officials, police said.

Police have registered a case and investigating the matter.