The ganja was impounded last night when the accused were transporting the contraband in two vehicles near G K Veedhi in the agency area here, they said.
According to police, the accused from Paderu area in Visakhapatnam agency procured the ganja from tribals and packed it in ten gunny bags and were planning to send it to Tamilnadu via road from the Andhra-Odisha border area.
The police also seized the vehicles used for transporting the ganja, which is estimated to be worth Rs 50 lakh-1 crore.
The arrested were identified as S Prabhakaran, Doraiswami Palpandi, SD Krishnan, V Selvam, K Pandanna and Mohamoud Abdur Razzaq and J Bheemaraju.