The Narcotics Control Bureau (NCB), a central government body, seized 23kg hashish (charas) worth Rs 50 lakh.
The NCB arrested five persons, including two who brought the consignment in a car from Srinagar, at Ghodbunder Road in Thane on Tuesday.
Yashodhan Wanage, zonal director, NCB, Mumbai Zonal Unit, said the drug was concealed in a silver Maruti 800 (RJ-14-CE-7280). The drug, in eight packets, was concealed in a cavity made in the backrest of the rear seat of the car.
The NCB arrested Liyaqat Ali Bhat, 20, resident of Srinagar, Manzoor Ahmad Dar, 26, resident of Bandipora in Jammu and Kashmir, Rasik Jagjivan Devraj, 52, resident of Borivli, Prakash Dhirajlal Soni, 34, resident of Malad, and Madhi Alagan Krishnan Nadar, 46, resident of Kandivili.
Bhat and Dar drove the car from Srinagar for four days and were to deliver the drugs to their Mumbai counterparts.
Wanage said the drug was dark brown balls of hashish. It is a superior quality of Kashmiri hashish and is in huge demand in Mumbai.
Though the value of the seized drug while supplying to distributors was Rs 35 lakh, it would have touched Rs 50 lakh by the time it reached the streets and would have sold at around Rs 2,000 per tola (10gm).
Officials said the inferior quality hashish, which is adulterated, costs Rs 1,200 to Rs 1,300 per 10 gm.
On Wednesday, the anti-narcotics cell had seized 6.5kg hashish concealed in CNG tanks of a Maruti Swift and Toyota Qualis at Bandra-Kurla Complex.