Three cotton merchants, hailing from Proddatur town, were intercepted by the special striking team of district police while they were travelling in a lorry at Uruturu village in VN Palli Mandal of Kadapa.
Upon search, police found Rs 10.68 lakh unaccounted cash in their possession and seized it, the election control room sources here said.
The seized amount was handed over to the Income Tax department, they said.
The district police have formed a special team to check illegal transfer of money in view of the elections in Andhra Pradesh.