The Prohibition and Excise Department sleuths seized about 360 kg of dry ganja, worth about Rs 40 lakh, and arrested two men near Vanjari village under G Madugula police station limits in Vizag agency today.
Two others managed to flee.
A police team led by inspector L Upendra intercepted a van travelling from G Madugula with a fake Andhra Pradesh number plate and seized the contraband.
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Pandia Rajan of Madurai in Tamil Nadu and Naidu Srinivas of Rajahmundry in East Godavari district were arrested.
They were allegedly taking the ganja to Tamil Nadu.
Police registered a case under Narcotic Drugs and Psychotropic Substances (NDPS) Act.