The Food and Drug Administration (FDA) officials along with a police team raided the Abdul chawl in Suresh Budhaji Jadhav Nagar of Nallasopara and seized gutka of various brands, FDA, Thane, Joint Commissioner P M Raut said.
A gutka packing machine and packaging material were also seized from the premises, he said.
The three persons were caught red-handed while they were involved in packing operation at the place, he said.
The quantity and value of the seized gutka was being assessed, he said.
The sale, manufacture and distribution of gutka is banned under the Food Safety and Regulation (Prohibition) Act.