The contraband was found hoarded in the farm house of Srinivasan following a tip-off, police said.
Selvam, a school-teacher, suspected to be a business partner of Srinivasan, was also arrested in this connection.
Police are searching for Srinivasan, his wife and two others in the case.
Selvam has been remanded in judicial custody.
Investigations revealed that both Selvam and Srinivasan were jointly smuggling the ganja from Andhra and selling it in this district, police said.
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