A van was intercepted by officials of Prohibition and Excise Department and around 40 bags of the contraband, each weighing about 40 kg were recovered from the vehicle, Excise Inspector of Narsipatnam, D V G Raju said.
The bags containing cannabis was concealed under gunny sacks filled with vegetables, he said. Two persons travelling in the vehicle, identified as M Venkat Rao (33) and P Mugri (22), were apprehended and the drug stock worth Rs 1.6 crore was seized, he said.
Preliminary investigation has revealed, the cannabis was procured from Lothugedda village area in Vizag Agency and was being transported to Tuni in East Godavari district to be delivered to L Srinivasa Chowdary, the alleged kingpin of ganja smuggling in the region, officials said.
A case under various sections of the Narcotic Drugs and Psychotropic Substances Act have been registered against the accused and hunt is on for other persons suspected to be linked to the case, they said.