Kasaragod: Two suspected drug peddlers, in their early twenties, were arrested in the busy border town of Uppala in Mangalpady panchayat, late Sunday night with 38.23 grams of MDMA and ₹1.62 lakh in cash, police said.

Manjeshwar Police said they acted on a tip-off that the two were selling the synthetic psychotropic drug from their car near the Taluk Hospital in Mangalpady.

Sub-inspector Ratheesh K G identified the accused as Ibrahim Suhail (23), a native of Shirya in Kumbla panchayat, and residing at Kubanoor near Uppala; and Mohammed Anasuddin (20) of Adka near Bandiyod in Kumbla panchayat. When the police knocked on the car at 11.35 pm, one of them was behind the wheel and the other in the rear seat.

During the search, officers recovered 38.23 grams of MDMA, commonly known as "ecstasy", in zip-lock covers kept inside the car. Anything about 10gm is considered a commercial quantity and attracts a punishment of 10 to 20 years and a fine of ₹1 lakh to ₹2 lakh under Section 22 (c) of the Narcotic Drugs and Psychotropic Substances (NDPS) Act.

Police also found ₹1,62,500 in cash from the vehicle. "They are school dropouts. We suspect the money to be proceeds of drug sales," said another officer. The money was in ₹500 and ₹200 notes.

Police have impounded the car and their two mobile phones. The seized items and cash were produced before the court on Monday, said the officer.