The accused, who were travelling in a mini-truck, were stopped at a check point last night near Kheri Nodh Singh road, Superintendent of Police Harcharan Singh Bhullar said.
Around 60 bags (24 quintals) of poppy husk were seized from the vehicle during checking.
Police arrested the driver of the vehicle Rajinder Singh Sweety, a resident of Malerkotla, as well two passengers - Abdul Gaffar, a resident of village Nodh Rani (Malerkotla) and Boota Singh, a resident of village Sangowal of district Jalandhar.
A case under sections of the NDPS Act was registered against the accused at Mandi Gobindgarh police station.
He said seven cases had already been registered against Boota Singh at various police stations of the state. He presently is out on bail in these cases.
The SSP said the accused will be produced in court to seek police remand for further investigation.