Officials of the directorate of revenue intelligence (DRI) seized 12 kg of heroin from a car in a village in the state's Tarn Taran district bordering Pakistan early on Sunday.
A senior DRI official said a trap was laid in the early hours on Sunday, following a tip-off, and a car passing by ordered to stop. However, the driver tried to flee but hit a roadside electric pole.
"When we reached the car, its occupants managed to run away by taking the advantage of darkness. We have recovered 12 kg heroin, worth Rs 60 crore (Rs.600 million) in the international market, from the car," he added.
Police have registered a case and started investigations.
Tarn Taran is 50 km from Amritsar city, which is around 250 km from state capital Chandigarh.