According to Customs, Chinese duo Yang Yingbin and Chen Ziteng were at the Chhatrapati Shivaji international airport on Friday to catch a flight to Hong Kong.
But as they excited the suspicion of airport security, a search was carried out of their luggage, which yielded 40kg sandalwood worth Rs 1,53,600, the official said.
The duo were allegedly trying to smuggle the sandalwood out to Hong Kong, he added.
"After a preliminary inquiry, the duo was handed over to forest department for further questioning," the officer said.