A police patrol noticed the duo moving around in a suspicious manner in in Kanjikonampalayam around 5.30 AM and trying to take a diversion on seeing them.
Police gave chase and nabbed them with the help of some members of the public.
A search revealed the sandalwood bits wrapped in clothes.
Both were taken to custody, police said, adding the vehicle and the sandalwood were impounded.
The value of the seized sandalwood bits was not immediately known.
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