Red Sanders Anti-Smuggling Task Force came across 70 persons carrying the red timbers on their shoulders in the Seshachalam forests this morning.
They fled from the spot and abandoned the logs after seeing the task force, a task force official said.
Later, after a chase, two were arrested and the force is combing the forest to nab the rest, he said.
About 50 personnel are engaged in the combing operations, he added.