Panic gripped Khanna after police recovered two unexploded rockets near the market committee office on Friday.
On receiving information, a police party reached the spot and cordoned off the area and called the bomb disposal squad to defuse the explosives. The police have placed sacks of sand around the rockets and deputed force for keeping people away.
The police suspected that the weapons have come in the containers with scrap from the bay countries, imported by the local furnace and factory owners. The factory owner has thrown the explosives in the plot to avoid police questioning, an official said.
Inspector Ranbir Kumar, SHO at city 2 police station said that a ragpicker noticed the rockets in a pit and informed members of the market committee. The police have initiated an investigation.