Senior police inspector Nitin Thackeray said a joint team of police and officials of Food and Drugs Administration had kept vigil near a mall on the Eastern expressway following a tip-off.
A car was intercepted, and 497 bottles of the various cough syrup brands, worth around Rs 50,000, were found, he said.
The two men in the car -- Ansari Soheb Ahmed Ataullah and Abdul Kadir Mohammad Ali Khan, both residents of Mumbai -- were arrested as they did not possess necessary permits.
A case was registered under Drugs and Cosmetics Act at Vartak Nagar police station.