They recovered 8.5 kg ephedrine, a chemical used for preparing heroin, worth Rs 8.50 crore from him.
During checking on Chandigarh road police intercepted the Devinder Singh's white-colour MUV, Fatehgarh Sahib SSP, H S Mann told reporters today.
When it was searched, they recovered the ephedrine. The chemical was concealed in a plastic bag, he informed.
Two driving licenses were also recovered from him and one was found to be fake. The genuine license was issued by District Transport Office Bathinda and his date of birth was mentioned as August 3, 1986, SSP added.
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A case under various sections of the IPC and under the provisions of the NDPS Act was registered against the accused at Fatehgarh Sahib police station today.
The SSP said Devinder Singh during interrogation confessed that he had close relations with NRI Anoop Singh Kahlon, Jagdish Singh Bhola and Sarabjit Singh and he was involved in drug trafficking and hawala with them.
According to the SSP, the MUV recovered from Devinder Singh belongs to Sarabjit Singh on whose instance he was on way to deliver the consignment of ephedrine.
Further investigations were under progress, he said.
The others arrested include Bhindranwale Tigers Force (BTF) terrorist Kulbir Singh Assandh, another NRI Kulwant Singh, Kahlon's driver Kulwinder Singh alias Rockey, Kuldip Singh (father of Rockey) and a retired DSP of UP Police Kirpal Singh (arrested from Meerut) besides Vijender's sparring partner boxer Ram Singh.
The case has also been in limelight over alleged links of Olympic medallist boxer Vijender Singh with Kahlon.
Vijender has denied any involvement in the drugs racket.