Acting on a tip-off, a police team intercepted a four-wheeler at Duggada area and seized 540 kg of the dry green drug, valued at Rs 50 lakh and arrested home guards K Srinivas, V Labbu and KVVS Prasad, who are all attached to Narsipatnam Town Police Station, besides K Siva, K Ramesh and one more person.
Narsipatnam ASP B Satya Yeshbabu said that six people procured the ganja from various parts of Vizag agency and loaded it in a four-wheeler to transport the contraband to Tuni in East Godavari.
The ganja and vehicle were seized and all the accused were arrested under provisions of the Narcotic Drugs and Psychotropic Substance (NDPS) Act.
The home guards confessed their role in the illegal trade.
The case is being probed from all angles to arrest more people involved in the case, the police said.