The chemical was packed in 40 bags weighing 50 kg and was being taken to Gangavathi taluk, Koppla district where it was to be sold to people involved in rock mining, said a report in DNA.
Gurappa, 60 and Mehboob Pasha, 21 hailing from Ananthapur, Andhra Pradesh were arrested by Kuduthini Village police. The duo were arrested after they failed to produce any document or bill that supported the purchase of the chemical legally. (Read more: Ammonium Nitrate to come under Explosive substance Act?)
"It's a regular supply done with unfair means. Though the item seized was going to be used for blasting hills, we cannot rule out the possibility of its use to cause major harm," said SP Chandragupta, Bellary.
Police also believe that the ammonium nitrate was stolen and the accused refused to disclose the names of the people from whom they got the chemical.
"We have not informed the Andhra Pradesh police yet as the miscreants or gang behind the supply can easily escape if the information leaks," said Chandragupta.
"We have passed a circular to all the police stations and shops selling pesticides and fertilisers in the district," he added.
After the Sept 7 blast outside Delhi High Court, AA Biswas, the deputy commissioner passed an order to arrest those involved in the sale and purchase of ammonium nitrate illegally.
A case has been registered with the Kuduthini police station.