Police in central China's Henan Province have detained a construction contractor after he led a group of 300 armed workers in demolishing the homes of 24 families.

Shang Jixiao, 31, was detained for allegedly sabotaging public and private property by police in Puyang City, China News Service said yesterday, quoting a government spokesman.

Shang is said to have been in charge of the gang as they pulled down the houses at 2am on March 18 to make way for a government project, Puyang police said.

Residents were said to have been forced from their beds by workers armed with iron bars before their houses were left in ruins.

They said water and power supplies had been cut off earlier by a real estate developer.

They also said they had suffered frequent threats from mafia-like gangs trying to get them to move.

The Puyang government said it would be discussing compensation for the residents.