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The arrested accused were identified as Mohammed Imran (36) from Moodushedde, Amzad Khan (42) from Netajinagar in Badagabettu, Udupi, and Abdul Basheer Abbas (39) of Manjanady.
Acting on a credible tip-off, police arrested the trio while they were distributing them in the Bondel Padushedde locality in a vehicle. The contraband was reportedly sourced from Bengaluru.
The police confiscated a substantial haul of illicit materials, including MDMA weighing 170 grams worth Rs 9 lakhs, 5 MDMA pills, a Maruti Ritz car, 6 mobile phones, and digital weighing scale.
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Another suspect, Abdul Basheer Abbas, had previously faced charges of assault.
Meanwhile, Investigations are ongoing to trace additional individuals involved in the case.