Kannur: In a major seizure amid election surveillance, the Kannur Town Police intercepted a car and recovered ₹2.65 crore in unaccounted cash, arresting two Thalassery-based men on Tuesday.

The arrested have been identified as Ajmal K, 25, of Peringathur and O P Sabith, 30, of Puliyanambam. They were booked under Section 112 of BNS for petty organised crime.

Town SHO Inspector Kylasnath S B said the team acted on a tip-off from Thalassery ASP Nandagopan M.

The Kannur-registered Hyundai Venue, coming from Karnataka, was intercepted at around 3.40 am at Caltex junction in Kannur city. The cash was concealed in a specially designed hidden compartment between the driver’s seat and the rear seat. Bundles of ₹500 and ₹200 notes were packed inside the cavity.

Police said the men refused to disclose the source of the cash and are suspected to be couriers for a hawala network.

With the election model code of conduct in force, the cash and vehicle have been handed over to the Income Tax Department. Police have also registered an FIR and launched an investigation, the officer added.