Cuttack, Oct. 28: Police today arrested two criminals - Laden Muna alias Sayed Abdul Motaquid, 47, and Amjad Khan, 33, - for allegedly threatening a contractor.

The move comes in the wake of two crude bombs being hurled at the executive engineer's drainage division office at Gandarpur on Monday to disturb the e-tender process for 30 projects worth Rs 7 crore.

The police have formed a special team to nab the persons involved in the bombing. Senior police officials suspect that the bombing had been carried out by local criminals working for a gangster called Tito. Assistant commissioner of police Trinath Mishra said Chauliaganj police made the two arrests today.

The contractor, Bharat Bhusan Swain of Gandarpur, had received a telephone call on October 23 and the caller had identified himself as Laden Muna. The caller had asked him not to take part in the construction of the drainage and barrage division. Muna had later demanded for a commission for various contracts in the division.

"Laden Muna had used the mobile phone of Amjad Khan, a petty contractor, to make the threat call to the complainant. Both the accused have been arrested after tracking the mobile phone last night," said Mishra.

Mishra said Muna was a key associate of gangster Tito and it is suspected that the bombing on the drainage division office was aimed at terrorising the registered contractors association.

The police said Muna, against whom seven cases of murder, attempt to murder and extortion are registered with the Kendrapara and Lalbagh police stations, was now getting involved in tender fixing. He was allegedly involved in two murder cases, including that of the Seikhbazar puja committee secretary Keshab Rout in July 2013. Muna was released on bail from Choudwar jail some five months ago.