Tripura Police recovered 40,560 bottles of Phensydel worth over Rs 22.5 lakhs from a godown in Badharghat town on Monday.
"We have arrested the owner of the godown and manager has also been detained," said Tarun Debbarma, a police official.
Bhadarghat Assembly constituency in Tripura will undergo by-elections on September 23.
The cough syrup Phensydel is often used as an addictive drug.
Further investigation is underway.
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