The two arrested were identified as Sachin Kumar Duggal and Inderjit Singh while their four accomplices including gang's kingpin Rakesh Kumar, alias Ricky, are still at large, police said.
"A car was found parked near the Tagore Park in a suspicious manner. On its search, a pistol along with three live cartridges and one air pistol was seized from Sachin Kumar Duggal and Inderjit Singh, who were sitting inside the vehicle," senior superintendent of police (Hoshiarpur) S S Gill.
Their interrogation further led to recovery of one LCD, Rs 1.68 lakh cash and one car.
Gill said the arrested confessed that they along with other gang members had robbed two women of gold and diamond jewellery, one LCD and Rs 10 lakh cash in New Civil Lines area on August 31, 2012 for which a case had been registered in the
city police station.
The gang's kingpin Kumar, who was a goldsmith by profession, allegedly used to melt the stolen jewellery and later sell them in market.
"The arrested accused were addicts and used to commit crimes to fulfill their lust for drugs," he said.
Raids are being conducted to arrest the remaining accused.