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About 750 packets of chewable tobacco products, some other drugs, a weighing machine and packing materials were seized during the raid, police said.
The workers, who were present at the packing centre, fled the spot before police officials reached the house where the illegal activities were taking place.
Police registered a case and investigation is going on, official sources said, adding that no one has been arrested so far in this regard.
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However, the southern state is reportedly a big market for chewable tobacco products as they are popular among the guest labourers from other parts of the country.