Acting on a tip off, 12th battalion of SSB personnel and local police searched the bus, which was on its way to Kishanganj from Araria, near L R P chowk and seized the contraband in a plastic bag kept in a luggage rack above the seat.
The seized hashish is valued at Rs 1.42 crore in international market, Bahadurganj police station house officer said.
A government teacher was detained in this connection but was later released after finding him innocent during interrogation.
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