Over 240 boxes of liquor bearing duplicate seals were also recovered from their possession.
A police spokesman said the accused have been identified as Jitender alias Dhola, Shishpal, Naresh, Neeraj and Uday.
Uday is a resident of Khedghat, district Depal in Nepal, the spokesman said, adding, the other four accused belong to different districts of Haryana.
Based on a a tip-off that sandalwood in large quantities had been stored at the residence of the accused Jitender in Sisana, police raided the place last night and arrested all the five accused and recovered sandalwood and illegal liquor.