Police raided a chemical factory in neighbouring Thane and confiscated 75 litres of liquid mephedrone, a synthetic stimulant drug, worth Rs 7.5 crore, officials said.
They added that it was the first time Mumbai police had seized mephedrone, also known as 'meow meow' among peddlers and addicts, in liquid form.
"Acting on a tip-off about a drug peddler in suburban Andheri, the police laid a trap and arrested one Shahid Hussain Shah with 300 grams of mephedrone worth around Rs 6 lakh," an official said.
Shah told police that he had sourced the drug from a firm called "Shree Sharda Chemicals" in Thane district's Badlapur MIDC area, police said.
"Shah revealed that this firm stored the drug in powder and liquid form in its factory. A raid was carried out by a team from Amboli police station under sub-inspector Daya Nayak yesterday," the official informed.
On searching the factory premises, the police team found three plastic cans each containing 25 litres of mephedrone in liquid form, an official said.
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"One Narayan Patel (75) was arrested from the spot and raw material to manufacture drugs was seized. The factory premises has been sealed. Shah and Patel have been remanded in police custody till April 17," he said.
A case was registered under the Narcotic Drugs and Psychotropic Substances Act and further investigations were underway, he said.