The arrest was made yesterday near Alluri Park at A L Puram under K D Peta police station limits in the Agency area of the district, a police officer said.
Three smugglers managed to escape from the spot.
"Based on the information that ganja was being transporting in a car and van, the police intensified vehicular checks. Noticing the police teams, the smugglers tried to escape from. However, five of them caught by the police, although three others escaped from the spot," Inspector of Koyyuru police station P V B Uday Kumar said.
Police also seized Rs 37,000 in cash and four mobiles besides two motorcycles and the ganja-laden vehicles from the gang.
The five accused were identified as Atchyuta Appalanaidu (30), Kethavath Senkar Nayak (25), Ramavath Siva Kumar (23), Ramavath Hanuma (37) and Banavath Naga (24), police said.
The gang had procured the drugs from Vizag agency and were transporting it to Narsipatnam.
"We have registered a case against the accused under the Narcotic Drugs and Psychotropic Substances (NDPS) Act and investigation is on to nab three others," Uday Kumar said.
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