The city police have seized about 12 metric tonne of red sanders (sandalwood) worth Rs 5 crore stocked in a container truck.
The contraband was allegedly meant to be transported to Kolkata port by road from where it would be shipped to China.
The police seized the red sanders late last night when smugglers loaded red sanders logs in a lorry from the container truck.
Deputy Commissioner of Police (Law and Order) M Srinivas told reporters that the exact weight and value of the cargo, its origin and destination are yet to be ascertained.
However, according to police sources, preliminary investigations revealed that the cargo might have been loaded in Nellore to transport to Kolkata in a lorry, after covering it up with banana.
During last night patrol, police constables and home guards found the container truck and a lorry moving suspiciously near the Allipuram area in the city.
When questioned, drivers of the vehicles claimed that they were carrying banana and banana leaves.
The police grew suspicious and asked them to open the container door. It was found to be loaded with red sanders logs, covered with fish containers.
The police arrested two people in connection with the trade and seized the red sanders logs, the container truck and the lorry.
