The Bairi police in Jajpur district seized 7.5 grams of brown sugar and arrested four people in this connection.
While one of the accused is from the Charmpa area in Bhadrak district, the other accused are from Chhatia and Chandikole areas.
The police also seized Rs 4,500 in cash and four mobile phones from the possession of the accused.The police registered a case and forwarded the accused to court on Monday.
Jajpur Road SDPO Chinmay Nayak said a team has been formed and further investigations were on to nab the others involved in the racket.