One of the peddlers has been identified as Rajinder Kumar, a resident of Bhallowal village.
Besides 100 gm heroin, worth Rs 50 lakh in the international market, a .12 bore pistol and two live cartridges were also recovered from Kumar last night, police said.
Kumar was involved in the escape of an undertrial gangster Akul Khatri from police custody near village Aur in Nawanshahr district on February 4, police said.
Another peddler Harpal Singh was arrested with 400 gram opium last night, police said.