Two others managed to flee.
A police team led by inspector L Upendra intercepted a van travelling from G Madugula with a fake Andhra Pradesh number plate and seized the contraband.
Pandia Rajan of Madurai in Tamil Nadu and Naidu Srinivas of Rajahmundry in East Godavari district were arrested.
They were allegedly taking the ganja to Tamil Nadu.
Police registered a case under Narcotic Drugs and Psychotropic Substances (NDPS) Act.
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