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Acting on a tip-off, a team from Kalyan Crime Branch unit conducted a raid at a shop in Shil-Phata area on Friday night.
The team seized the contraband stock, which included various brands of gutka and tobacco products intended for sale and distribution, a police spokesperson said.
Two persons, both aged 29 and residents of Mumbra and Shil-Phata area, were arrested after the raid.
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Authorities were investigating from where the accused procured the banned goods.