Sir, can melamine crockery factory installed and operated in residential area. If no, what is remedy …

No, Factories are not allowed in residential areas,

you may take the following actions against the factory management.

engage a lawyer, 1. may get a stay order from the civil court
2, removal of nuisance through magistrate
 3. you should file a complaint before the Environmental tribunal.
you may file an online complaint here
 http://environment.gov.pk/complaints/