It was suspected that the cash was being sent to the Bijepur Assembly constituency where a by-election would be held on February 24, the Sub-divisional Police Officer (SDPO) of Padmapur, Laxminarayan Panda, said.
Both the ruling BJD and the opposition BJP accused each other of being involved in the incident, and using black money to motivate voters in the by-poll bound Bijepur Assembly segment.
The businessman's car was intercepted near Mahulapalli during checking yesterday night, the SDPO said, adding, the police had a tip-off about the money being transported from Chhattisgarh.
The duo was arrested after they failed to explain why they were carrying so much cash, Panda said.
The police had earlier said that the amount of money seized was to the tune of Rs 42.5 lakh.
Meanwhile, both the parties submitted memorandums with the Chief Electoral Officer (CEO) of Odisha, Surendra Kumar after yesterday's arrest.
Seeking a probe by the Enforcement Directorate (ED) and the Income Tax Department, the BJD in its memorandum to the CEO alleged, "As ascertained, the money was to be distributed among the electorates of Bijepur Assembly constituency to vote for the BJP, which is a blatant violation of Model Code of Conduct."
"The money was being carried for the BJP," alleged BJD vice-president and Odisha minister S N Patro.
Similarly, the opposition BJP in its memorandum alleged that the money was meant for the BJD.
The arrests in this case is an eyewash, the BJP memorandum to the CEO said, demanding an investigation into the relationship of the businessman with the BJD leaders.
"Last night's cash seizure has indicated that the BJD has been using black money to influence voters in Bijepur segment," claimed BJP spokesman Sajan Sharma.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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