The consignment of drugs had been sent via courier from the USA by a friend of one of the accused, the official said.
The five arrested were identified as Arbaz Taj Mohammad Khan (20), Farhan Ali Khan (26), Adamya Samir Modi (22), Chirag Vishal Jain (24) and Lakshman alias Nikhil Rajan (24).
The Kandivali Unit of ANC laid a trap at Chincholi Bunder near Mind Space in Malad west and arrested them, police said.
Senior Police Inspector Sunil Mane of Kandivali unit told PTI, "LSD, a mood-changing drug is also known as 'acid', among others. It is sold in the form of small tablets ('microdots'), capsules or gelatin squares ('window panes') to youths in rave parties, pubs and high profile parties."
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Adamya Modi is an associate producer in a leading entertainment channel, police said adding that while Chirag is a TY B.Com student, Lakshman is a hardware engineer. Arbaz and Farhan are the main accused in this racket, the official added.
According to the official, this is the largest seizure in recent few years by ANC Mumbai.
"All the accused were produced before the court today, which remanded them in police custody till April 3," Mane, who led the team under supervision of Deputy Commissioner of Police (ANC) Shivdeep Lande, said.
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