Shimla Police stopped Mohinder Rana's official vehicle at Shoghi checkpost, 13 km from here and upon searching found the drugs, a police official said.
State Transport Minister G S Bali said that Rana has tarnished the image of the Corporation and has been suspended with immediate effect.
He said that the seized drugs are worth around Rs 2.5 crore in the international market.
Rana has been suspended in the past also but then BJP- ruled state government reinstated him in 2008.
All of them would be produced in the court, police said.
Bali said that it is a very serious matter and a thorough probe will be ordered into the matter.
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